- Dogecoin price looks like created a short-term top and may continue to move lower moving ahead.
- The highlighted resistance area at 41.0 Satoshis proved a crucial barrier and might push the price down.
- If sellers manage to break 38.0 Satoshis, then a move towards 36.0 Satoshis is possible in the near term.
Dogecoin price failing to move above 41.0 Satoshis is a bearish sign and could ignite another round of selling if sellers step in.
Downside Slide in Dogecoin Price
Dogecoin price had no relief, as there were no signs of bulls. On the other hand, there are a few signs on the hourly chart (price feed from CEX.IO) that suggests that the price may have formed a short-term top. There was a continuous rejection around 41.0 Satoshis. If we consider the mentioned level as a short-term top, then an initial support can be around 23.6% Fib retracement level of the last wave from the 29.0 Satoshis (low) to 40.9 Satoshis (high) at 38.0 Satoshis.
If sellers manage to clear the stated support area of 38.0 Satoshis, then we may see a downside reaction taking the price towards 36.0 Satoshis. There is no real momentum at present, which is a concern for both buyers and sellers.
The price is on a declining streak with a slow and steady pace. It can be clearly visible on the hourly chart (price feed from HitBTC). There is a contracting triangle formed as well along with a monster bearish trend line, suggesting that sellers have a slight upper hand.
Looking at the indicators:
Hourly MACD – The hourly MACD is in the bearish zone as of this analysis was written.
Hourly RSI – The RSI is below the 50 level, and stayed most of the time in the negative zone.
Intraday Support Level – 38.0 Satoshis
Intraday Resistance Level – 41.0 Satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View