2023-4-24 16:29 |
The Dogecoin (DOGE) price has nearly reached its range low after a rejection from the range high on April 3.
Moreover, the price broke down from a short-term pattern, further accelerating its rate of decrease. So, while it seems almost certain that DOGE will reach its range low, what will happen once it gets there?
DOGE Price Approaches Range LowThe Dogecoin price broke out from a long-term resistance line on March 21. It reached the $0.100 resistance area on April 3. This is a horizontal resistance area and the 0.382 Fibonacci retracement level. The Fibonacci retracement levels are a sequence of horizontal lines that identify support and resistance zones.
After a sharp movement in one direction, the price often reverses the trend and returns to one of the lines before resuming the original trend.
The DOGE price rejection (red icon) validated the $0.100 area as resistance.
DOGE/USDT Daily Chart. Source: TradingViewIf DOGE’s price surpasses this level, the next resistance will be at $0.122, corresponding to the 0.618 Fibonacci retracement resistance level. However, if the decrease continues, the next closest support area will be at an average price of $0.072.
Dogecoin Price Prediction: Will Breakdown Lead to Lower Prices?The technical analysis from the short-term six-hour time frame suggests that the DOGE price will fall toward its range low of $0.072.
The first reason for this comes from the price action. The DOGE price broke down from an ascending support line on April 21. When a line measures the slope of an upward movement, its breakdown usually signals that the upward movement has come to an end.
The second one comes from the Relative Strength Index (RSI) readings. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and to determine whether to accumulate or sell an asset. If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
DOGE/USDT Daily Chart. Source: TradingViewIn the case of DOGE, the RSI is below 50 and has broken down from an ascending support line (green line). As a result, it gives a bearish Dogecoin price prediction.
Despite this bearish Dogecoin price forecast, reclaiming the ascending support line would mean that the short-term trend is bullish. In that case, an increase to the resistance line at $0.100 and possibly the $0.125 resistance area will likely follow.
For BeInCrypto’s latest crypto market analysis, click here.
The post Dogecoin (DOGE) Price Nearing Range Low: What’s Next? appeared first on BeInCrypto.
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