The price of Dogecoin (Doge) has been decreasing since July 25th. On October 9th, it fell below the horizontal support zone
The price of Dogecoin (Doge) has been decreasing since July 25th. On October 9th, it fell below the horizontal support zone.
Even so, prices have not significantly decreased. On the contrary, it began to rise four days later.
The technical analysis of Doge's daily time frame shows that since June, prices have been trading above the level support area of $0.060.
During this period, Doge prices also moved along the downward resistance line. When they are combined, they form a descending triangle, which is considered a descending form.
On October 9th, the Dogecoin price decline model supported the level. However, this issue is short-lived as prices quickly reversed the trend.
Doge is currently trading within the $0.060 level range and the downward resistance line. As of now, the line has been in operation for 85 days.
Doge/USDT daily chart
The daily relative strength index (RSI) is rising. RSI is a momentum indicator used to evaluate market XEM overbought or oversold, guiding traders when to buy or sell assets.
An RSI above 50 and an upward tilt indicate an upward trend in the outlook. On the contrary, an RSI below 50 indicates a decrease in mood.
Although the RSI is still below 50, it is rising. In addition, it has formed a high divergence (green) since August.
When the upward momentum is accompanied by a decrease in prices, there will be a bullish divergence, and it is usually called a surge before the trend rises.
Due to the rising trend of RSI and the failure to successfully regain key areas, the daily time frame provides an uncertain outlook.
To confirm this trend, two things must happen: the daily closing price of Meme coins must be above the downward resistance line and the $0.060 range. Secondly, the daily RSI must rise above 50.
If this situation occurs, the price of Doge may rise by 20% and reach a resistance level of $0.070. The resistance level is generated by the 0.5Fit retracement level of the entire downward trend.
According to Fibonacci's retreat theory, after a significant price change occurs in one direction, prices are expected to retreat and continue to develop in the original direction.
This theory also helps to determine the potential support level during the decline period. The external Fibonacci level of 1.61 is 0.048 US dollars, consistent with the potential bottom.
Doge/USDT daily chart
Therefore, Doge's price forecast will depend on whether the price will rise above $0.060 or be rejected.
If rejected, the competitive currency may decline by 18% to the next support level of 0.048 US dollars.
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