Even after rebounding off a key support zone earlier on Monday, the Dogecoin price is still stuck in a downward channel. In the short term, the altcoin, which is rated 10th in the cryptocurrency market by CoinGecko, will likely continue under pressure.
Its price has plummeted by 9.2 percent in the last seven days. However, it has gained 2.7 percent in the last 24 hours, recouping some of the previous week’s losses.
Price forecast for Dogecoin
Even though DOGE is still in a decline, it has rebounded off the support zone of 0.2000. On Sunday, the altcoin’s losses widened as bears sought to break through the previously indicated support. It has now risen over the crucial barrier of 0.2069 after touching an intraday low of 0.1922.
Despite the recent rally, Dogecoin is still trading in a declining channel that started earlier this month. It is trading below the 25 and 50-day exponential moving averages on a four-hour chart. Furthermore, the highlighted trendlines along the RSI are creating a wedge.
The price of Dogecoin is expected to be under pressure in the next sessions, based on these technical indications. I anticipate it to trade in a very narrow range. The top border of the horizontal channel will most likely be around the 50-day EMA at 0.2153, with the lower border likely to be at the weekend’s low at 0.1916. It may rise to 0.2303 if it breaks through the indicated resistance level before reverting to the horizontal channel.