- Dogecoin price failed to hold gains, and moved below an important support area to call for more losses.
- The support trend line on the hourly chart as highlighted yesterday was breached to encourage sellers.
- The price has also moved below the 100 hourly simple moving average, which is a warning sign in the near term.
Dogecoin price after failing to move above 66.0 Satoshis moved lower and broke an important support trend line.
Trend line break
We followed a support trend line on the hourly chart, which was acting as a hurdle for sellers. However, they managed to clear the highlighted trend line to open the doors for more losses in the short term. One critical aspect was that the 100 hourly simple moving average (SMA) was also breached during the downside drift, which is a signal that buyers are struggling to hold the ground. Currently, the price is supported by the Lower Bollinger Band, which is aligned with the 38.2% Fib retracement level of the last wave from 53.5 Satoshis to 65.9 Satoshis.
A break below the same might push the price towards the next support area of 60.0 Satoshis. The stated level is positioned with the 50% Fib retracement level, and it acted as a pivot area on many times. So, there is a possibility of buyers appearing around 60.0 Satoshis if the price trades lower. Any further losses might be very destructing in the near term.
On the upside, if buyers manage to take the price back above the 100 SMA, then the chances of the price gaining momentum are high. The next hurdle would be around the previous swing high of 63.0 Satoshis.
Intraday Support Level – 63.0 Satoshis
Intraday Resistance Level – 60.0 Satoshis
The hourly RSI and MACD are signaling more losses moving ahead.
Charts courtesy of Trading View