- It looks like Dogecoin price may not be able to break an important resistance area of 40.0-41.0
- The price remains at a risk of a break lower, as there is no increase in the buying sentiment lately.
- If there is no push above 41.0 Satoshis, we may witness a decline in the price towards 36.0 Satoshis.
Dogecoin price continues to struggle as buyers are finding it hard to break a crucial resistance area of 40.0-41.0 Satoshis, which possess a threat of a move lower.
Trend Line and Resistance Area
We highlighted in yesterday’s post that there is a major resistance area near 41.0 Satoshis that must be broken if buyers want to take the price higher. It looks like the chance of a break higher is decreasing, as there is no real momentum. The highlighted trend line and resistance area on the 4-hours chart (price feed from CEX.IO) is acting as a barrier for buyers and preventing gains.
Moreover, the 61.8% Fib retracement level of the last wave from the 47.0 Satoshis (high) to 28.9 Satoshis (low) is also around the stated resistance area. The only hope for buyers is the 100 simple moving average (4H), which is protecting losses and keeping sellers in check. If at all sellers succeed in breaking the 100 MA, then there can be a nasty decline in Dogecoin price. So, on the downside we need to keep a close eye on the 100 MA.
No doubt, the price is nearing a break, as it is clear from the contracting triangle forming on the 30-mins chart (price feed from HitBTC).
Looking at the indicators:
4H MACD – In the short-term, there is no real substantial signal noted on the 4-hours MACD.
4H RSI – The RSI is around the 50 mark, and remains at a risk of moving in the bearish zone.
Intraday Support Level – 38.0 Satoshis
Intraday Resistance Level – 41.0 Satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View