Fri, Jan 21, 2022 10:22 PM by Benzinga

Dogecoin Sits At A Critical Support Level: Can It Hold?

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Dogecoin (CRYPTO: DOGE) is trading lower Friday as the entire cryptocurrency market is having a bearish day. Much of this movement stems from the large dip Bitcoin has been making throughout the past couple of weeks. Dogecoin is now at a previous support level it once was holding above. The crypto was down 2.24% at $0.1507 at time of publication. See Related: Dogecoin Is Now The Most Traded Token Among 1,000 Largest Binance Chain Whales Dogecoin Daily Chart Analysis Dogecoin has fallen to the support level near $0.15 and looks like it could see a drop below the support level if the selling continues. If this level becomes an area of support in the future, the price could be ready for a further bearish move. The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the crypto is seeing recent bearish sentiment. Each of these moving averages may hold as an area of resistance in the future. The Relative Strength Index (RSI) has been dipping throughout the last week and is now sitting at 38. This shows there are more sellers in the crypto than there are buyers and the most recent trend is that more sellers have moved into the crypto. What’s Next For Dogecoin? Dogecoin is at a key level on the chart, right at the support level that it has been able to hold many times in the past. If this level is able to hold again, the crypto could start seeing more bullish momentum. Bulls want higher lows to start forming and for the RSI to begin to climb once again. Bulls are also looking for a cross back above the moving averages. Bearish traders are hoping that doge will be unable to hold the support level and will cross below the $0.15 level. If the price can hold below this level and begins to hold as resistance, then the crypto could be ready for a strong bearish move. © 2022 Benzinga does not provide investment advice. All rights reserved.