Dogecoin Price Analysis: Bearish Long-Term Forecast
The price of Dogecoin (DOGE) has dropped below the moving average lines but is still above the $0.076 support level. Since the price drop on January 3, 2024, DOGE has been stabilizing above this support level. However, its upward movement is being limited by the moving average lines, particularly the 21-day SMA. DOGE has retraced after reaching this barrier line and is currently valued at $0.079. Despite this, the altcoin is consolidating above its current support.
Dogecoin Indicator Reading
On the 4-hour chart, the price bars of DOGE are positioned between the moving average lines. The use of doji candlesticks has restricted its price movement, resulting in a current consolidation phase. As a result, DOGE remains trapped between these moving average lines.
Technical Indicators
Key resistance levels for DOGE are at $0.12 and $0.14, while key support levels are at $0.06 and $0.04.
What’s Next for Dogecoin?
Currently, DOGE is trading sideways within the range of $0.076 and $0.086 after the decline was halted on January 3. The cryptocurrency’s decline has eased as it consolidates above its current support level of $0.076. However, if this support is broken, DOGE/USD will likely return to its previous low of $0.070.
Hot Take: Dogecoin’s Bearish Outlook in the Long Term
The price analysis suggests a bearish long-term forecast for Dogecoin (DOGE). Despite stabilizing above the $0.076 support level, DOGE’s upward movement is being limited by the moving average lines. The altcoin’s current consolidation phase and its position between these moving average lines indicate a lack of clear direction. Key resistance levels at $0.12 and $0.14 will pose challenges for DOGE in its attempt to rally, while key support levels at $0.06 and $0.04 provide some stability. Overall, a break below the current support level could result in a return to previous lows for DOGE.
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