September 20, 2017

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Dogecoin Price at Major Crossroads for Two Reasons



Key Highlights

  • Dogecoin price is possibly trading at a major crossroads, as there is a range formed on the hourly chart.
  • Secondly, the price is currently testing a monster bearish trend line formed on the 4-hours chart.
  • A break above the highlighted trend line and resistance area may trigger an upside rally.

Dogecoin price is above the 100 simple moving average (4-hours chart), which may encourage buyers to break the trend line and resistance area.

Break likely?

Dogecoin Price chart


Dogecoin price recovered well recently, as it traded above a major hurdle of 35.0 Satoshis, and the 100 MA on the 4-hours chart (price feed provided by CEX.IO). However, the price is currently trading near a monster resistance area, which is a confluence of a bearish trend line and the 61.8% Fib retracement level of the last leg from the 47.0 Satoshis (High) and 28.9 Satoshis (low).

If buyers succeed in breaking the highlighted trend line and resistance area, then it may open the doors for an upside move towards 45.0 Satoshis. It won’t be an easy task for buyers, as there are many hurdles on the way up for them.

Dogecoin Price  chart

The hourly chart of Dogecoin price (data feed from HitBTC) suggests that the price is trading inside a range. On the upside 42.0 Satoshis can act as a resistance, and on the downside 36.0 Satoshis may prevent losses. There is a possibility of more ranging moves before the price breaks in one particular direction.

Looking at the indicators:

MACD – The hourly MACD is moving in the bearish slope, which is a warning for buyers.

RSI – The hourly RSI is also below the 50 level, suggesting the amount of pressure on the bulls.

Intraday Support Level – 36.0 Satoshis

Intraday Resistance Level – 42.0 Satoshis

In short, in the near term we need to keep a close eye on the trend line and resistance area on the 4-hours chart for a break.

Charts from HitBTC and CEX.IO; hosted by Trading View



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