Dogecoin (CRYPTO: DOGE) further increased the likeliness for bulls to charge higher after consolidating above a critical price level.
What Happened: According to CoinMarketCap data, as of press time Friday Dogecoin is trading at $0.243 after seeing its price increase by about 1.4% over the previous 24 hours. As noted Thursday, it’s critical for the coin’s price to keep above the 0.13 Fibonacci level at $0.235 — where the coin has been trading for over a week — for it to test the resistance at $0.297.
On Thursday, Dogecoin closed its daily candle at $0.242 after flirting with the support by dipping down to $0.233. The coin’s RSI is slowly approaching the oversold territory and currently standing at under 42.
If the RSI falls much lower without the $0.235 support being invalidated then we should start expecting a trend reversal starting a new uptrend that won’t see major obstacles until it hits the $0.297 level.
Hitting the $0.297 level would also mean that the price would reach above the Ichimoku’s Kumo — which also recently became bullish — which would then start acting as a support as well. If the current resistance were to be invalidated, it could result in Dogecoin going to freefall until it hits a floor at $0.16. Any bullish sentiment would be invalidated if this support were to be breached signaling new lows and setting the idea in stone that DOGE is in a downtrend.