Dogecoin (DOGE) shot up but was rejected at $0.29 resistance. Before the recent uptrend, the altcoin was in a sideways trend. Yesterday, buyers retested the $0.29 overhead resistance to resume the uptrend.
The overhead resistance was also tested again on August 7 and 12. Further upside depends on breaking above the overhead resistance. On the upside, a break above resistance will send the cryptocurrency to $0.44. The original price target is at the high of $0.38. However, the current upside scenario is doubtful as DOGE is trading in the overbought territory. Currently, the DOGE price is retesting the overriding resistance to overcome it.
Dogecoin indicator reading
Dogecoin price is trading at the 73 level of the Relative Strength Index for the period 14. The cryptocurrency will lose strength to recover upwards. The 21-day line SMA crosses above the 50-day line SMA, which is a buy signal. The moving averages are sloping upward, indicating an uptrend. DOGE is above the 80% area of the daily stochastics, indicating exhaustion of upward momentum.
Technical indicators:
Major Resistance Levels – $0.80 and $0.85
Major Support Levels – $0.30 and $0.25
What is the next direction for Dogecoin?
It is likely that DOGE/USD will resume its upward movement if it breaks above the $0.29 resistance level. Otherwise, the downtrend will continue if the altcoin is rejected by the overhead resistance. The Fibonacci tool is still useful. In the August 8 uptrend, a candlestick tested the 50% Fibonacci retracement level. The retracement suggests that DOGE will rise to the 2.0 Fibonacci extension level or the $0.37 level.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
