The price of dog coins has been declining since July 25th, breaking below the level support level on October 9th, but still maintaining a long-term support level.The daily relative intensity index (RSI) shows a bearish trend
- The price of dog coins has been declining since July 25th, breaking below the level support level on October 9th, but still maintaining a long-term support level.
- The daily relative intensity index (RSI) shows a bearish trend. The current value is below 50 and is decreasing, indicating potential bearish sentiment.
- Despite bearish predictions, a significant rebound from the long-term support level of $0.057 may lead to a significant rebound.
The price of dog currency (DOGE) has been declining since July 25th and broke below the level of support on October 9th.
Despite falling below the level of support, cryptocurrencies still have longer-term support. Can DOE rebound?
Dog coins falling from critical levels
Daily chart technology analysis shows that since June 10th, the price level of DOGE has remained above $0.060.
In addition, it indicates that since July 25th, DOGE has been following a downward sloping resistance trend line. The combination of these two factors forms a descending triangle pattern, which is usually considered a bearish pattern.
On October 9th, the price of dog coins fluctuated again, falling below the support level. This decline led to a low of $0.057, the lowest price since August 17th, when the cryptocurrency had fallen to $0.055.
Yesterday, the rebound of DOGE was not sustained, leading to a decline.
The daily relative strength index (RSI) shows a bearish trend. RSI is a momentum indicator that helps traders evaluate whether the market is overbought or oversold, providing guidance on whether to buy or sell assets.
When the RSI reading is above 50 and the trend is upward, it is beneficial to be bullish. On the contrary, if the RSI reading is below 50, it indicates bearish sentiment.
At present, the RSI is below 50 and is declining, which is a sign of a bearish trend. In addition, the indicator has fallen below its bullish deviation trend line (green line).
DOGE Price Forecast: What Will Happen After a Crash?
The weekly analysis also presents a negative outlook, which has two main reasons.
Firstly, the price of DOGE is currently within a large downward triangle pattern, with a bottom of $0.057. As mentioned earlier, this pattern is often seen as bearish.
If there is a collapse that covers the entire height of the triangle (black line), the price of DOGE may drop to $0.020. At current prices, this means a decrease of 67%.
The 1.27 Fibonacci extension (white) further strengthens the role of this level as a potential bottom, as it overlaps with $0.020.
According to Fibonacci's retreat theory, after a significant price fluctuation in one direction, prices are expected to partially retreat to their previous price levels and then continue to develop in the same direction.
This theory can also help determine the potential support level during a downward trend. 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 significant rebound from the long-term support level of $0.057 may lead to a 16% increase in the long-term downward resistance trend line (currently at $0.070).
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