Dogecoin (DOGE) Cryptocurrency Can Be Expected to Fall to the Next Support Level 0.3620

Dogecoin cryptocurrency under the bearish pressure after the earlier downward reversal from the resistance zone located between the key resistance level 0.4750

Dogecoin cryptocurrency is trading lower on Monday after the earlier bearish technical setup. The cryptocurrency created a Shooting Star Doji candlestick pattern after hitting the upper daily Bollinger Band and the key Fibonacci resistance level 0.4750. The lower boundary of the sideways price range that has been forming since last month is now seen as the next support level for Dogecoin cryptocurrency, which is likely to fall to this support level 0.3620.

Having hit the upper Bollinger Band and the key Fibonacci resistance level 0.4750, Dogecoin cryptocurrency reversed lower from this strong resistance zone, creating a Shooting Star Doji candlestick pattern on the daily chart, as can be seen below. This bearish candlestick pattern together with the strong resistance at this price level and the lower Bollinger Band now being far below the price suggest that Dogecoin cryptocurrency is likely to fall to the lower boundary of the sideways price range that has been forming since last month. This support level is seen at 0.3620.

After the earlier sharp rally wave 1 (which was unfolding as a bullish Ending Diagonal) got stopped by the key Fibonacci resistance level 0.4750 at the end of November, Dogecoin cryptocurrency started trading within a sideways price range, the lower boundary of which is now seen as the next support level for Dogecoin cryptocurrency. The upper boundary of this sideways price range together with the key Fibonacci resistance level 0.4750, which stopped the earlier sharp impulse wave 1, now creates a strong resistance zone, which is likely to stop the earlier bullish wave C (part of the bullish ABC correction) from continuing its advance any further to the upside.

To the downside, the lower Bollinger Band is now trading significantly far below the price, which together with the strong support in the lower part of the daily chart (created by the lower boundary of the sideways price range that has been forming since last month) suggests that Dogecoin cryptocurrency is likely to continue falling lower towards this strong support level at 0.3620. Having fallen sharply from the highs of the earlier bullish wave 1 (which got stopped by the key Fibonacci resistance level 0.4750) and now trading in the lower half of the daily Bollinger Bands, Dogecoin cryptocurrency is seen as being under bearish pressure, which is likely to push the cryptocurrency down to the lower boundary of the sideways price range at 0.3620.

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