The price of dog currency (DOGE) fell below the support range of 120 days and hit a low of $0.057 on October 9th
- The price of dog currency (DOGE) fell below the support range of 120 days and hit a low of $0.057 on October 9th.
- Dog coins are still trading in a long-term downward triangular pattern. Both weekly and daily RSIs are bearish.
- Despite the bearish outlook, a rebound in the long-term support area of $0.057 may lead to price increases.
The price of dog currency (DOGE) fell below the 120 day support range on October 9th.
Despite the price collapse of DOGE, the cryptocurrency is still trading within long-term support levels.
Gougou Coin has fallen below the 120 day support area
Daily time frame technical analysis shows that since June 10th, the price of DOGE has been trading above the level support area of $0.060.
In addition, it indicates that since July 25th, DOGE has fallen into a downward resistance trend line. They together form a descending triangle, which is considered a bearish pattern.
The volatility of Dogcoin returned on October 9th, leading to a collapse in the support area. This resulted in a low of $0.057, the lowest price since August 17th, when the counterfeit currency fell to a low of $0.055.
The price of DOGE rebounded slightly yesterday, forming a long shadow line, but has not yet reached the $0.060 area.
The daily relative strength index (RSI) is bearish. RSI is a momentum indicator that helps traders determine whether the market is overbought or oversold. This provides instructions for accumulating or selling assets.
If the RSI reading is above 50 and the trend is upward, then bulls have an advantage, but if the reading is below 50, the opposite is true.
The indicator is below 50 and is declining, both of which are considered signs of a bearish trend. In addition, the indicator has fallen below the bullish deviation trend line (green line).
DOGE Price Forecast: What's the Next Step after the Crash?
The weekly time frame also provides a bearish outlook. There are two main reasons for this.
Firstly, the DOGE price trades within a large downward triangle, with a bottom of $0.057. As mentioned earlier, this is considered a bearish pattern.
The collapse along the entire triangle height (black line) will cause DOGE to drop to $0.020. Compared to the current price, it has decreased by 67%.
The 1.27 Fibonacci extension line (white) also supports this area as a local bottom as it drops to $0.020.
According to the Fibonacci retreat level theory, after a significant price change occurs in one direction, prices are expected to partially return to their previous price levels and then continue to develop in the same direction.
This theory can also be used to identify the bottom of future downward trends.
Similar to the daily time frame, the weekly RSI is in a bearish state as it is below 50 and is decreasing.
Despite the bearish price forecast of DOGE, a strong rebound in the long-term level support area of $0.057 may lead to a 20% increase in the long-term downward resistance trend line (currently $0.070).
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