- Dogecoin price as mentioned yesterday formed a double top pattern near the last swing high of 67.0
- We need to wait for a break in order for the price to move lower and retest 60.0
- The price is attempting to close below the 100 hourly simple moving average, which is a negative sign for buyers.
Dogecoin price formed a double top pattern recently, and if sellers gain control more losses are possible moving ahead.
Double Top Formation
We highlighted in yesterday’s analysis that the Dogecoin price formed a double top pattern on the hourly chart, as there were two rejections noted around 67.0 Satoshis. Sellers were seen aggressive once the pattern was formed. The neckline of the pattern is also broken, and the price is attempting to close below the 100 hourly simple moving average. Currently, the price is trading around the 88.6% Fib retracement level of the last wave from 59.9 Satoshis to 67.0 Satoshis.
It is likely that the price might head lower and retest the last swing low of 60.0 Satoshis. Now, there is a bullish trend line formed on the hourly chart sitting just above the mentioned level. So, if the price heads lower it would be interesting to see how buyers react around it. A break below the trend line and support area could ignite losses in the near term. The next support area on the downside can be seen around 54.0 Satoshis moving ahead.
On the upside, an initial resistance is around the 100 hourly SMA. A break above it could take the price towards 63.0 Satoshis, which is a major resistance area in the short term.
Intraday Support Level – 60.0 Satoshis
Intraday Resistance Level – 63.0 Satoshis
The hourly RSI and MACD are aligned for more losses.
Charts courtesy of Trading View