Dogecoin – Daily Tech Analysis – May 18th, 2021It’s a relatively bullish start to the day. Dogecoin would need to avoid a fall back through the day’s pivot to bring $0.50 levels back into play, however.
Dogecoin fell by 5.14% on Monday. Reversing a 0.98% gain from Sunday, Dogecoin ended the day at $0.4874.
A mixed start to the day saw Dogecoin rise to an early morning intraday high $0.5164 before hitting reverse.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Falling short of the first major resistance level at $0.5588, Dogecoin slid to a mid-morning intraday low $0.4539.
The reversal saw Dogecoin fall through the 38.2% FIB of $0.4618 and the first major support level at $0.4596.
Finding late morning support, Dogecoin revisited $0.51 levels before a 2nd sell-off.
The 2nd sell-off saw Dogecoin fall to sub-$0.47 levels before a partial recovery to $0.48 levels.
In spite of the 2nd sell-off, Dogecoin avoided a fall back through the 38.2% FIB of $0.4618.
At the time of writing, Dogecoin was up by 0.37% to $0.4892. A mixed start to the day saw Dogecoin fall to an early morning low $0.4810 before rising to a high $0.4929.
Dogecoin left the major support and resistance levels untested early on.
For the day ahead
Dogecoin would need to avoid a fall back through the $0.4859 pivot to bring the first major resistance level at $0.5179 into play.
Support from the broader market would be needed, however, for Dogecoin to break back through to $0.50 levels.
Barring an extended crypto rally, the first major resistance level and Monday’s high $0.5164 would likely cap any upside.
In the event of another breakout, Dogecoin could test resistance at and the 23.6% FIB of $0.5691 before any pullback. The second major resistance level sits at $0.5484.
Failure to avoid a fall back through the $0.4859 pivot would bring the 38.2% FIB of $0.4618 and the first major support level at $0.4554 into play.
Barring an extended sell-off, however, Dogecoin should steer clear of the second major support level at $0.4234.
Looking at the Technical Indicators
First Major Support Level: $0.4554
Pivot Level: $0.4859
First Major Resistance Level: $0.5179
23.6% FIB Retracement Level: $0.5691
38.2% FIB Retracement Level: $0.4618
62% FIB Retracement Level: $0.2882
Please let us know what you think in the comments below.