Price of Dogecoin Falls Below Moving Average Lines
The price of Dogecoin (DOGE) has dropped below the moving average lines, signaling a bearish outlook for the cryptocurrency. The negative momentum weakened after the price broke down below the $0.073 support level on January 3. However, DOGE’s attempt to recover was stopped by resistance at $0.087 and the moving average lines.
Currently, DOGE is trading at $0.079 and is bearish following its rejection on January 11. If the bearish momentum continues, Dogecoin could reach its previous low of $0.070. On the other hand, if buyers can keep the price above the moving average lines, there is a possibility of a positive trend resumption.
Dogecoin Indicator Reading
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The price bars of DOGE/USD are below the moving average lines, indicating vulnerability to a decline. Extended candlestick tails suggest strong buying at lower prices. Additionally, the 21-day SMA has crossed below the 50-day SMA, indicating a bearish crossover for DOGE.
Technical Indicators
Key resistance levels for Dogecoin are $0.12 and $0.14, while key support levels are $0.06 and $0.04.
Next Direction for Dogecoin
DOGE/USD is expected to continue falling towards the low of $0.070 as resistance at $0.087 and the moving average lines reject each other. The altcoin’s price has been oscillating between $0.076 and $0.088, and a further decline is likely once the current support level at $0.076 is breached.
Hot Take: Bearish Outlook for Dogecoin
The price of Dogecoin has fallen below the moving average lines, indicating a bearish trend for the cryptocurrency. If the bearish momentum continues, DOGE could reach its previous low of $0.070. However, if buyers manage to keep the price above the moving average lines, there is a possibility of a positive trend resumption. Technical indicators also suggest a bearish outlook for DOGE/USD. Key resistance levels are at $0.12 and $0.14, while key support levels are at $0.06 and $0.04.
