- Dogecoin price failed to move higher above an important resistance area of 58.3-4 Satoshis, and traded lower.
- There was a downside reaction noted, which took the price below the trend lines highlighted in yesterday’s post.
Dogecoin price failed to move higher, and as a result traded lower to open the doors for more losses moving ahead.
Trend Line Break
The Dogecoin price failed to trade above the last swing high of 58.3 Satoshis, as there were many attempts to gain traction but sellers successfully defended it. There were a couple of bullish trend lines as highlighted in yesterday’s analysis, which were broken during the downside move. A break below the trend lines was crucial and points to the fact that sellers managed to gain control in taking the price lower. The worst part was the fact that the price even traded below the 100 hourly simple moving average, which is a bearish sign.
If the price attempts to correct higher, then the broken trend lines might act as a resistance in the near term. However, before than the 100 hourly SMA might also come into play. Any further gains might be contained by the 38.2% Fib retracement level of the last drop from 58.3 Satoshis to 53.7 Satoshis. Remember, the price moved below a critical pivot of 56.5 Satoshis, which might act as a hurdle moving ahead.
On the downside, the last swing low of 53.7 Satoshis can be seen as a support area. A break below it could take the price towards the next important area at 52.5 Satoshis that acted as a support earlier many times.
Intraday Support Level – 52.5 Satoshis
Intraday Resistance Level – 56.5 Satoshis
The hourly RSI is below the 50 level, which is a bearish sign in the near term.
Charts courtesy of Trading View