Dogecoin (CRYPTO: DOGE) recently saw a significant price downturn, but what’s next for the leading memecoin?
What Happened: As of press time, Dogecoin lost over 2.5% of its value over the last 24 hours and is trading just under $0.24.
Looking at the DOGE USD daily chart, we can see it’s been testing the 0.13 Fibonacci level at $0.235 for well over a week. As the price consolidated at that level, its RSI sharply fell and is currently nearing the oversold region at 40.
With RSI being this low the selling pressure is seeing its forces vanish and we should expect that the price will most probably finally jump off of the 0.13 Fibonacci level towards the $0.296 area, reaching above the Ichimoku’s Kumo that recently became bullish.
On the bearish sign, the 200-day moving average crossed over the 50-day moving average on Sept. 14, drawing a death cross on the chart and the William’s Alligator predicts a pickup in negative volatility.
If bears push the price under the $0.235 price level, then they would find some resistance at the $0.20 price level and then a major floor at $0.16. Any bullish sentiment suggested by the low RSI level would be invalidated by a breach of the $0.16, since it would show a seller sentiment strong enough to keep the coin in the oversold territory for a significant length of time.