- Dogecoin price spiked higher one more time to trade near the last swing high of 67.0
- The price failed to trade above 67.0 Satoshis once again, which created a double top pattern on the hourly chart.
- More losses are possible if the Double Top pattern is valid and sellers gain control.
Dogecoin price failing twice around 67.0 Satoshis is a warning sign, and might ignite a downside move in the near term.
100 SMA as Support
We stated yesterday that there is a chance that the Dogecoin price might head lower. There was a downside reaction in the price, as it traded towards a major support area of 60.0 Satoshis where it found buyers. There was a nasty upside move after the downside reaction. The price climbed back towards the last high of 67.0 Satoshis. The most interesting thing was the fact that the price failed to clear the stated level, which created a double top pattern. Sellers were seen in action, as they took the price lower back below the 50% Fib retracement level of the last wave from 59.9 Satoshis to 67.0 Satoshis.
Currently, the price is near the 76.4% Fib level, which is coinciding with the 100 hourly simple moving average. So, there is a possibility that the price might correct higher in the near term. We need to see whether the highlighted double top pattern is valid or not. If the pattern is valid, then there is a chance of the price breaking the 100 SMA and trading lower.
On the upside, an initial resistance is around the 63.0 Satoshis, which acted as a pivot area on many occasions.
Intraday Support Level – 61.5 Satoshis
Intraday Resistance Level – 63.0 Satoshis
The hourly RSI and MACD are in the positive zone highlighting gains moving ahead.
Charts courtesy of Trading View