DOGE traders use a range of trading signals and technical indicators to predict price direction. While not all methods are required to accurately predict market direction, some key indicators carry more weight. Identifying Dogecoin support and resistance levels gives traders insight into the market’s supply and demand while helping to determine trend reversals.
In addition, chart patterns are also widely used by traders to determine trend lines that help predict the next candlestick movement.
Various indicators; such as RSI, Moving Average, and MACD, can be used to determine the direction of the long-term trend and attempt to predict future price movements.
Price action on the neutral side, the price fell below the horizontal resistance area of $0.365087 after previously moving lower. Such a deviation is considered a neutral sign. Despite this decline, the price of DOGE is still positive %422.94 since the beginning of this year.
RSI
The RSI offers additional insight into market momentum by measuring the size of Dogecoin’s price movements to determine whether it is overvalued or undervalued.
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions, and to determine when to accumulate or sell an asset. A reading above 50 and an uptrend indicates that the bulls are still in control. Meanwhile, a reading below 50 indicates the opposite.
According to the RSI, on the 1-Day time frame, Dogecoin is currently trending bullish with an actual RSI reading of 69.53. The 50 line could provide support, if the indicator moves back to it.
Moving averages
Moving averages are important analytical tools that provide traders with a broader view of what is happening on the chart by calculating the average closing price of Doge over a specified time period. The relationship between the short-term and long-term moving averages is important in determining the trend.
