Dogecoin Price Key Highlights
- Dogecoin price broke a contracting triangle pattern formed on the hourly chart, as highlighted in yesterday’s analysis.
- There was no major follow through after the break, but the price managed to settle above the 100 hourly MA.
Dogecoin price moving higher is a positive sign, as anticipated due to continuous rejections around 52.5 Satoshis.
The Dogecoin price after rejecting around the last swing low of 52.5 Satoshis many times traded higher. The contracting triangle pattern formed on the hourly chart was breached to clear the way for more upsides in the near term. However, the upside was not sharp, as the price found resistance around the 38.2% Fib retracement level of the last drop from 58.4 Satoshis to 52.6 Satoshis. Buyers failed to take the price above the mentioned level, and it is currently trading back inside the triangle.
However, one positive point to note is the fact that the price is still above the 100 hourly simple moving average, which should give some encouragement to buyers. If the price continues to trade lower from the current levels, then the triangle support area might again come into play. Moreover, the most important hurdle for sellers around 52.5 Satoshis is still intact, and it won’t be easy for them to break it. A break below it may perhaps call for a move towards the all-important 50.0 Satoshis.
If the price moves higher, then the 38.2% Fib retracement level could once again act as a resistance. A break above it might be a bullish call having the potential to take the price towards the last swing high of 57.0 Satoshis.
Intraday Support Level – 52.5 Satoshis
Intraday Resistance Level – 55.0 Satoshis
The hourly RSI has moved below the 50 level, which suggests that the recent break might be a false one.
Charts courtesy of Trading View