- Dogecoin price continued to trade in a range, and the trading range is narrowing as highlighted in yesterday’s post.
- The highlighted bearish trend line formed on the hourly chart continued to move lower, increasing the chance of a break.
- 100 hourly simple moving average is acting as a resistance below the bearish trend line.
Dogecoin price is likely heading towards a break, but we need to see how it goes moving ahead.
The Dogecoin price continued to trade in a narrow range, but the fact remains is that the price might be heading towards a break. There are a couple of things aligned, as highlighted in yesterday’s analysis, which are pointing towards a break. The first thing is that the there is a bearish trend line formed on the hourly chart. The trend line is just above the 100 hourly simple moving average. Furthermore, the Upper Bollinger Band is also acting as a barrier for buyers, and adding to the importance of the resistance zone. Moving ahead, buyers need to clear 64.0 Satoshis in order for more gain in the near term.
If buyers manage to clear the range resistance area, then the price may move towards the 23.6% Fib retracement level of the last drop from 82.0 Satoshis to 59.8 Satoshis. Any further gains could be limited, and might be dependent on how the break shapes moving ahead.
On the downside, as we have been saying all this week, there is a major support area building around the Lower Bollinger Band at 60.0 Satoshis. Let us see if there is a break below the stated level or not.
Intraday Support Level – 60.0 Satoshis
Intraday Resistance Level – 64.0 Satoshis
The hourly RSI and MACD are almost flat, which means we need to wait a bit for a break.
Charts courtesy of Trading View