- Dogecoin price moved lower and broke the all-important 50.0 Satoshis area for a new low.
- There was a break below the support trend line, as forecasted in yesterday’s post.
- The downside reaction was in the form of a spike, as the price traded towards 47.0 Satoshis before recovering.
Dogecoin price moved lower and traded below a critical support area of 50.0 Satoshis, which is a bearish sign.
More Losses ahead?
Yesterday, we mentioned that there is a chance of a break below 50.0 Satoshis, as there were many bearish signs noted on the hourly chart. The price did move lower and broke the mentioned level. There was even a spike below the highlighted bullish trend line and support area. The price traded as low as 46.9 Satoshis where it just managed to find buyers for a move higher. The price managed to trade back inside the broken trend line and channel support area, but the price action suggests that there is still a lot of bearish pressure.
The Dogecoin price is still below the 100 hourly simple moving average, which points to the fact that sellers are here to stay. Moreover, the upper bearish trend line is intact and acting as a barrier. If there is a move higher, then the 50% fib retracement level of the last drop from 53.2 Satoshis to 46.9 Satoshis could act as a hurdle. It is aligned just below the 100 MA. Lastly, the next resistance can be around the 61.8% Fib level at 51.0 Satoshis.
On the downside, an initial support is around 48.0 Satoshis, followed by the last swing low of 46.9 Satoshis.
Intraday Support Level – 48.0 Satoshis
Intraday Resistance Level – 51.0 Satoshis
The hourly RSI is below the 50 level, suggesting that more losses are possible.
Charts courtesy of Trading View