Dogecoin Price Setting Up For Another Leg Lower?

Key Highlights

  • Dogecoin price corrected higher Intraday, but found resistance near a major pivot area of 35.0-36.0 Satoshis.
  • A likely short-term top is formed on the hourly chart (price feed from HitBTC), calling for a retest of the last low.
  • The hourly RSI is strongly bearish and may encourage sellers take to take the price lower in the near term.

Dogecoin price likely completed a short-term correction, and it may dive down one more time to trade near the last swing low of 32.0 Satoshis.

35.0 Satoshis Resistance Proved Worth

Dogecoin Price chart

Yesterday, we stated that there is a monster resistance building near 35.0 Satoshis, which may prevent the upside move in the near term. The price did traded close to the stated level, but failed to break it. Dogecoin price is now moving lower once again, and also closed below the 100 hourly simple moving average (price feed from HitBTC). There is a chance that the price may head back towards the recent low of 32.0 Satoshis where buyers could put up a fight in the short term.

When analyzing the hourly chart with the price feed from CEX.IO, then we may notice that the 50% Fib retracement level of the last drop from the 40.0 Satoshis high to 30.0 Satoshis low is playing its part well and acting as a resistance.

Dogecoin Price chart

However, there is no denial that there are some positive signs emerging for buyers via this data feed. There is a possibility of the price moving towards the highlighted trend line and resistance area once the price settles above the 100 hourly simple moving average.

Looking at the indicators:

Hourly MACD – The hourly MACD is in the bearish slope, pointing more losses.

Hourly RSI – The RSI is below the 50 level, which is another sign of bears.

Intraday Support Level – 30.0 Satoshis

Intraday Resistance Level – 35.0 Satoshis

Charts from HitBTC and CEX.IO; hosted by Trading View

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