Dogecoin (CRYPTO: DOGE) is trading lower Friday as the cryptocurrency market is having a bearish day. DOGE has fallen below a key support line and is looking more and more bearish as it falls further from the support level.
Dogecoin was down 4.13% at $0.1239 at the time of publication.
See Also: Why Is Dogecoin Slumping Today?
Dogecoin Daily Chart Analysis
- Dogecoin cracked below the $0.15 support line and has been falling further from the level. The downward trend can be shown on the graph by connecting the highs of the chart and observing how they create a downward slope (orange). Until this trendline is broken, the crypto will continue to trade lower.
- The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing bearish sentiment. Each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has slowly been fading lower over the past few weeks and now sits at 39. This shows that selling pressure is dominating the market and is the cause for the downward trend. If the RSI stays below the middle line, the downward trend will likely not be broken.
What’s Next For Dogecoin?
Dogecoin continues to fade lower and needs to see some buying pressure to turn around. The line that connects the highs will need to be broken in order for the crypto to see a reversal in the future.
Bullish traders want to see the RSI cross back over the middle line, showing buying pressure is coming. They would then like to see the crypto break above the orange downward trending line and head back up and cross the $0.15 level.
Bearish traders are in control and would like to see it hold below the trendline and continue to push lower.
