- As highlighted yesterday there is a contracting triangle pattern formed on the hourly chart, which might produce swing moves in the short term.
- The triangle is contracting, which means there is a break likely moving ahead.
- The only concern for buyers is that the price is below the 100 hourly simple moving average (SMA).
Dogecoin price is heading towards a break and it would be interesting to see which way the price moves after it.
There was a nice bullish reaction noted for the Dogecoin price, which helped buyers to gain traction after the price traded as low as 56.5 Satoshis. The stated level was around the 76.4% Fib retracement level of the last wave from 53.5 Satoshis to 65.9 Satoshis tp produce a bounce. Now, there is a contracting triangle pattern forming on the hourly chart, which could act as a catalyst for a break in the near term. If we look at the hurdles on the upside, then the triangle Upper trend line is positioned with the 100 hourly simple moving average. It means there is a chance of sellers appearing around the 61.0 Satoshis.
A break above 61.0 Satoshis could push the price towards the next barrier at 64.0 Satoshis. Any further gains may call for a move towards 67.0 Satoshis, which represents the previous swing high.
On the downside, the triangle support trend line holds the key for more losses in the short term. There were many attempts already to clear the trend line, but sellers failed. If they succeed in the near future, then the price could test the last swing low of 54.0 Satoshis.
Intraday Support Level – 57.0 Satoshis
Intraday Resistance Level – 61.0 Satoshis
The hourly RSI and MACD are suggesting that the price is under bearish pressure.
Charts courtesy of Trading View