Dogecoin Bounces Off Support: What's Next For The New Year

Dogecoin DOGE/USD shares are trading slightly lower Monday as the crypto market is seeing a green day. Dogecoin looks to be bouncing off a key level of support and has been trending higher ever since.

Dogecoin was down 0.57% at $0.1896 Monday afternoon at publication.

See Related: Missed Out On AMC, GameStop And Dogecoin In 2021? Here's Why That's OK

Dogecoin Daily Chart Analysis

• Dogecoin sits in the middle of a sideways channel and is nearing the possible area of resistance near $0.35 after bouncing off of the $0.15 support level. Higher lows will need to start forming for the crypto to reach the next area of resistance.
• The crypto trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows the crypto is trading with bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been climbing since the crypto bounced off support in early December and now sits at 52. This shows that the buying pressure is now above selling pressure for the first time since mid-November.

What’s Next For Dogecoin?

After seeing a bounce off of support, Dogecoin is starting to have a bullish look once again. Bulls are looking to see the price form higher lows and trend toward resistance. If the crypto can cross above the resistance, bulls would like it to be able to hold above this resistance and consolidate before making another push once again. Bears are looking to see the crypto turn around and fall back to the $0.15 support before breaking below it.

Photo: Executium via Unsplash