- Dogecoin price spiked higher as anticipated in yesterday’s post and created a new high above 57.0 Satoshis.
- Sellers failed to capitalize on the double top pattern, and as a result there was an upside reaction.
- Looking at the broad view, there is likely an ascending channel pattern formed on the hourly chart.
Dogecoin price managed to gain bids, and traded above a major resistance above 57.0 Satoshis.
Ascending Channel Formation
We followed a double top pattern on the hourly chart, which should have been resulted in a downside move. However, we noticed yesterday, that sellers failed to gain momentum, which created a risk of a break higher. The price did move higher Intraday, and even managed to spike the previous swing area of 57.0 Satoshis. A new weekly high was established around 58.3 Satoshis. There were a lot of spikes in volatility as well, which can be clearly seen on the hourly RSI.
However, one disappointing aspect to note was the fact that there was no major upside move, as sellers stepped in to prevent gains. The price dived back and traded towards the 100 hourly simple moving average. It even broke the 50% Fib retracement level of the last wave from 51.1 Satoshis to 58.3 Satoshis, and tested the 76.4% Fib level where it found buyers.
There is now an ascending channel pattern forming on the hourly chart, which might act as a reason for the next move. As long as the price is below the 60.0 Satoshis, it remains at risk of a move lower.
On the downside, the channel support area and the last swing low of 51.0 Satoshis might act as a barrier for sellers.
Intraday Support Level – 51.0 Satoshis
Intraday Resistance Level – 58.0 Satoshis
The hourly RSI and MACD are positioned on the positive zone, highlighting more gains.
Charts courtesy of Trading View