- Dogecoin price made an attempt to trade higher and cleared a bearish trend line highlighted in yesterday’s post.
- The price found resistance around 56.5 Satoshis, which represents a major hurdle for buyers.
- The price is currently trading around the 100 hourly simple moving average and setting up for the next move.
Dogecoin price failed twice to break an important level of 56.5 Satoshis, which creates a risk of o double top pattern.
We highlighted a bearish trend line in yesterday’s technical analysis, which acted as a resistance for some time and later paved the way for more gains. However, the upside was limited, as the price found resistance around an important level at 56.5 Satoshis. The mentioned level represents a previous swing area and another failure positions the Dogecoin price for a double top pattern. Currently, the price is trading near the 100 hourly simple moving average, and it would be interesting to see how it trades in the near term.
No doubt, there is a monster resistance formed around 56.5-57.0 Satoshis, as it represents the double top level. Moreover, the 50% Fib retracement level of the last drop from 63.0 Satoshis to 51.1 Satoshis is also aligned around the stated area. If buyers manage to settle the price above the 100 hourly SMA, then a move towards the double top resistance are is possible. A break above is needed to invalidate the pattern and to call for more gains moving ahead.
On the downside, the most important support is near 52.0 Satoshis. A break below it might call for a move towards the last low of 51.1 Satoshis.
Intraday Support Level – 52.0 Satoshis
Intraday Resistance Level – 56.5 Satoshis
The hourly RSI and MACD are positioning for more losses in the near term.
Charts courtesy of Trading View