Dogecoin Is On The Edge Of A Key Level And Needs To Hold: A Technical Analysis

Dogecoin Is On The Edge Of A Key Level And Needs To Hold: A Technical Analysis

Dogecoin DOGE/USD is trading slightly lower Friday, along with the majority of the cryptocurrency market. 

Doge is nearing a key support level and if it breaks below, could see a strong bearish continuation move.

Dogecoin was down 3.79% at $0.168 Friday afternoon at publication.

See Related: Dogecoin Consolidates The Elon Musk-Fueled Rally, Core Developer Advises Caution: What's Next?

Dogecoin Daily Chart Analysis

  • After falling below the higher low trendline, Doge made a strong bearish move and pushed toward support. Now the crypto is sitting just above the $0.15 support level and looking as though it may break below the level. This is a possible bearish sign for the future.
  • The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
  • The Relative Strength Index (RSI) has been on a downtrend for the past couple of months and now sits at 39. This shows that sellers have been piling into the crypto and pushed it lower.

What’s Next For Dogecoin?

Falling below the moving averages and the higher low trendline was a bearish sign for Dogecoin. Now the crypto is hanging near the $0.15 support level and could see a drop below this level if the selling continues. Bulls are looking for a bounce off support and for the crypto to head toward the $0.35 level. Bears are looking to see the price fall below the $0.15 level and begin to hold this level as resistance.

Photo by Executium on Unsplash

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