Dogecoin (DOGE) Drops Sharply to $0.40 Low as Sellers Continue to Short On the Downside

Key Resistance Levels: $0.45, $0.46, $0.47
Key Support Levels: $0.25, $0.20,$0.15

DOGE/USD Long-term Trend: Bullish
Dogecoin has been in a downtrend. The altcoin dropped sharply from a high of $0.739 to a low of $0.357. Presently, the coin is finding support above $0.350 support. The upward move will resume if the current support holds. Meanwhile, on May 8 uptrend, a retraced candle body tested the 50% Fibonacci retracement level. This Fibonacci retracement indicates that DOGE will rise to level 2.0 Fibonacci extension or the high of $1.299.

Daily Chart Indicators Reading:
DOGE price has fallen to level 51 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The crypto’s price is above the moving averages despite the recent downtrend. There is a possibility of upward movement.

DOGE/USD Medium-term bias: Bullish
On the 4 hour chart, the DOGE price is in an uptrend. It is currently facing rejection at level 0.70. Nevertheless, on May 5 uptrend; a retraced candle body tested the 78.6 % Fibonacci retracement level. The retracement indicates that DOGE will rise to level 1.272 Fibonacci extension or the high of $0.77 and reverse. From the price action, DOGE/USD has reversed from the high of $0.730 and plunged to the low of $0.350.

4-hour Chart Indicators Reading
DOGE is below the 50% range of the daily stochastic. The coin is in a bearish momentum. The crypto’s price is below the SMAs which suggests that the coin may further decline on the downside. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.

General Outlook for Dogecoin
DOGE price is falling to revisit the previous low at $0.350. According to the Fibonacci tool analysis, the market will decline to 1.618 Fibonacci extension or the low of $0.22. Presently, DOGE has fallen to $0.41 low.

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