- The Dogecoin price daily chart clearly suggests that the price is under heavy bearish pressure and it is likely continue moving lower.
- There is a monster bearish trend line on the daily timeframe chart with resistance around 40.0
- The daily MACD is under a minor divergence, which means there is a possibility of a short-term correction.
Dogecoin price may correct higher moving ahead, but if we look at the big picture, then it is quite clear that the price is in a downtrend.
40.0 Satoshis as Sell Zone?
We highlighted many times during the past couple of weeks that the Dogecoin price is under the bearish pressure, and likely to continue trading lower. Our selling rallies idea played well many times. Now, let’s have a look at the daily timeframe chart of the Dogecoin price (data feed from CEX.IO) that could help us understand why the price still remains under the selling pressure.
There is a bearish trend line formed on the daily chart, acting as a barrier for the price every time it corrects higher. Moreover, the highlighted trend line and resistance area is sitting near the 38.2% Fib retracement level of the last drop from the 57.8 Satoshis (high) to 29.0 Satoshis (low) at 40.0 Satoshis.
However, an initial resistance is around the 23.6% Fib retracement level (57.8 Satoshis high to 29.0 Satoshis low), which is also coinciding with the last swing low of 36.0 Satoshis. In short, the 36.0-40.0 Satoshis represents a major resistance area for buyers moving ahead. The same resistance area can be clearly seen on the hourly chart (data feed from HitBTC) with a bearish trend line.
Looking at the indicators:
Daily MACD – The daily MACD is under a minor divergence, suggesting a minor correction is likely moving ahead that can find sellers near 40.0 Satoshis.
Hourly RSI – It has moved above the 50 level to encourage buyers in the short term.
Intraday Support Level – 32.0 Satoshis
Intraday Resistance Level – 40.0 Satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View