- Dogecoin price dived lower, and the recent trend line break turned out to be a false one.
- The price moved below the last low to create a new low around 52.6 Satoshis.
- 100 hourly simple moving average is acting as a monster resistance, as buyers failed to break it.
Dogecoin price moved lower below the last low to open the doors for more losses in the near term may be towards 50.0 Satoshis.
Move towards 50.0 Satoshis?
We highlighted recently that there might be a false break on the hourly chart of Dogecoin, as there was a trend line break but it was not convincing due to no follow through. Since buyers failed to take the price higher, there was a nasty downside reaction. The price moved lower and fell below the last low of 54.5 Satoshis to trade near 52.6 Satoshis. The recent move might be a critical one, as the 54.5 Satoshis support area was very important. A break below it is a signal for more losses in the short term.
There is now a descending channel formed on the hourly chart, which is acting as a medium for a downside move. If the price clears the channel resistance area, then the 23.6% Fib retracement level of the last drop from 63.0 Satoshis to 52.6 Satoshis might come into play. It holds the key as it coincides with the previous low of 54.5 Satoshis, which might act as a resistance moving ahead. Moreover, the 100 hourly simple moving average is also positioned above it.
On the downside, the last low of 52.6 Satoshis is a support area, followed by 52.0 Satoshis.
Intraday Support Level – 52.6 Satoshis
Intraday Resistance Level – 54.5 Satoshis
There are no positive signs on the hourly RSI and MACD for buyers as of writing.
Charts courtesy of Trading View