- Dogecoin price surged higher one more time to retest the previous swing high as anticipated in yesterday’s analysis.
- The price failed once again around 90.0 Satoshis, which raises the prospect of a double top pattern.
- 100 MA still holds the key for more losses in the near term.
Buying Dogecoin on dips turned out to be a great plan, as the price traded higher after testing the 100 MA.
Double Top Pattern
As mentioned and forecasted yesterday, there was an upside move in Dogecoin price after sellers failed to take the price below the 100 hourly MA. The price climbed all the way back to the recent high of 90.0 Satoshis where sellers managed to protect gains one more time. Since, the price failed around a same area twice, there is a chance of a double top pattern formation. However, sellers might need a solid reason to take the price lower as buyers are in control and it would be difficult to outpace them at the moment.
The Bollinger Bands have started to shrink, meaning the price might consolidate in a range moving ahead. On the downside, the 100 hourly simple moving average is the most important support area, i.e. currently around 76.0 Satoshis. A break below the same could set the price for a move towards a bullish trend line on the hourly chart, positioned at 73.0 Satoshis.
On the upside, an initial resistance is around the 38.2% Fib retracement level of the last drop from 89.3 Satoshis to 75.9 Satoshis. A break above the same might clear the way for a move towards the 50% fib level.
The most important hurdle is around the Upper Bollinger Band sitting around the 61.8% Fib level.
Intraday Support Level – 80.0 Satoshis
Intraday Resistance Level – 84.0 Satoshis
In short, the possibility of the price moving higher is more as long as buyers are in action.
Charts courtesy of Trading View