- Dogecoin price spiked down and tested the swing low of 26.5 Satoshis where buyers defended the downside.
- This can be seen as a false break or may be a quick move down with the data feed from HitBTC.
- The price is still above a major support trend line on the 30-min chart, suggesting that short-term trend is still bullish.
Dogecoin price after the recent false spike may trade back higher. If there is a close above 32.0 Satoshis, then buyers may take control.
Buy close to the trend line and support area?
Dogecoin price fell sharply Intraday, and broke a major support trend line on the 30-min chart (data feed from HitBTC). However, the mentioned decline can be seen as a false break and not real market movement. The price is back up now, and trading above the highlighted trend line and support area. One interesting aspect is that the price is just above the 100 simple moving average.
On the downside, the 100 MA along with the 38.2% Fib retracement level of the last wave from the 26.5 Satoshis low to 32.6 Satoshis high can be seen as a support area. As long as the price is above it, there is a chance of it moving higher. We can consider buying near the mentioned support area.
However, buyers need to be very careful, as the 32.0 Satoshis resistance area is still holding gains. There is also a bearish trend line on the hourly chart (data feed from CEX.IO), which may act as a hurdle. Moreover, the 100 hourly MA is currently preventing an upside move.
Looking at the indicators:
30-min MACD – The MACD is about is in the bearish zone, suggesting a downside move.
30-min RSI – The RSI has moved below the 50 level, which is another bearish sign.
Intraday Support Level – 29.0 Satoshis
Intraday Resistance Level – 32.0 Satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View