- Dogecoin price failed again to break an important resistance level at 38.0-40.0 Satoshis, which has become a concern for buyers.
- A bearish trend line on the hourly chart along with the 100 hourly moving average continue to act as a hurdle for more gains.
- Looking at the data feed from CEX.IO, there is a contracting triangle pattern formed, which is set for a break in the near term.
Dogecoin price struggle continues, but sellers need to be very careful moving ahead as if there is a break, then sharp gains are likely.
How Long Sellers Can Defend Upside?
There was an attempt by buyers to take the Dogecoin price higher recently, but the upside movement was restricted. The main reason for this was the fact that the recently highlighted major resistance around 38.0-40.0 Satoshis acted as a barrier for them. There is a bearish trend line formed as well, which is meeting around the stated resistance zone, pointing towards the importance of this hurdle.
The price feed from HitBTC clearly suggests that 40.0 Satoshis corresponds to a significant resistance, but on the other hand, the price feed from CEX.IO is signaling towards a break. There is a contracting triangle forming near 36.0-38.0 Satoshi price band. So, it would be interesting to see which way the price breaks.
If buyers have to take the price higher, then a break above the 50% Fib retracement level of the last leg from the 47.0 Satoshis (high) to 29.0 Satoshis (low) is required.
Looking at the indicators:
MA – The 100 hourly simple moving average (SMA) is sitting near the breakout zone, which could be the key in the short term for a break.
Hourly RSI – It is below the 50 level, suggesting buyers are struggling.
Intraday Support Level – 35.0 Satoshis
Intraday Resistance Level – 38.0 Satoshis
Overall, if buyers have to take control, they need to break the 40.0 Satoshis resistance area.
Charts from HITBTC and CEXIO; hosted by Trading View