Despite the recent break of the horizontal support area on the lower timeframe, longer-term support has remained intact for Dogecoin (DOGE).
Technical analysis on the daily timeframe reveals that DOGE’s price has held above the $0.060 mark since June 10. However, it also indicates that the token has been following a descending resistance line since July 25, with the lowest point reached on August 17 when DOGE dropped to $0.055.
The daily Relative Strength Index (RSI) suggests a bearish trend, and the Fibonacci retracement level of 1.27 (white) aligns with $0.020, confirming this area as a local bottom.
Dogecoin (DOGE) Maintains Long-Term Support Amid Short-Term Decline
Fibonacci levels are often considered key areas where a price movement might stall or reverse after a significant directional move, making them crucial for technical analysis.
The weekly RSI also points to a bearish trend, mirroring the situation on the daily timeframe.
This analysis highlights the importance of understanding both short-term and long-term trends when evaluating the price movements of cryptocurrencies like DOGE. It’s essential for traders and investors to consider a range of factors and indicators before making decisions.