- Dogecoin price surged higher after breaking a couple of important resistance area, as anticipated in one of our previous week’s posts.
- The price traded towards the last swing high of 58.4 Satoshis, which prevented any further gains.
Dogecoin price climbed higher and tested our long-awaited target of a buy call, and looks set for a correction moving ahead.
A correction underway?
The Dogecoin price rocketed higher recently and cleared a couple of important resistance levels, including a bearish trend line on the hourly chart and the 38.2% Fib retracement level of the last drop from 58.4 Satoshis to 52.6 Satoshis. There was a nice upside reaction, as the price headed towards the previous swing high of 58.4 Satoshis, and traded as high as 58.3 Satoshis. It is important to note that there was a break above 56.5-6 Satoshis as well, which represented a major hurdle for buyers.
If the price starts a correction from the current levels, then an immediate support lies around the 23.6% Fib retracement level of the last leg from 52.3 Satoshis to 58.3 Satoshis. The mentioned fib level is also coinciding with the pivot level of 56.6 Satoshis. So, there is a chance of buyers appearing around the highlighted support area. Any further downsides might push the price towards the next support area, i.e. a bullish trend line formed on the hourly chart. The trend line is also positioned with the 61.8% Fib level.
On the upside, 58.3 Satoshis might continue to act as a resistance. A break above it could take the price towards 60.0 Satoshis in the short term.
Intraday Support Level – 56.5 Satoshis
Intraday Resistance Level – 58.3 Satoshis
The hourly RSI is around the overbought levels, which means there is a possibility of a minor correction moving ahead.
Charts courtesy of Trading View