Dogecoin Price Technical Analysis – Next Leg Lower Underway

Dogecoin Price Key Highlights

  • Dogecoin price traded higher recently, but the upside move was not convincing, which leaves it at a risk of declines.
  • The broken trend line (as highlighted in yesterday’s post) was tested again.
  • There is a chance that the price might head lower one more time and retest 60.0 Satoshis in the near term.

Dogecoin price failing to hold gains is a worrying sign, and might call for a move lower if buyers did not manage to push it higher.

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Retest of 60 Satoshis?

The Dogecoin price showed a lot of bearish signs on the hourly chart, which leaves it at a risk of a move lower in the near term. As highlighted yesterday, there was a trend line break, which can be a false one and might push the price lower. It looks like there could be a downside reaction and the price might head towards the last swing low of 60.0 Satoshis. There is a major divergence forming on the hourly RSI, which supports the mentioned scenario.

Dogecoin

One important point is that the price struggled recently to settle above the 100 hourly simple moving average, which is a warning sign that the price could move lower. On the upside, the 23.6% Fib retracement level of the last drop from 66.9 Satoshis to 60.7 Satoshis may perhaps serve as a resistance if the price attempts to climb higher. It is aligned with the Middle Bollinger Band, so a break above it could take the price towards the Upper Bollinger Band.

On the downside, the last swing low of 60.0 Satoshis is seen as a support area, followed by 54.0 Satoshis.

Intraday Support Level – 60.0 Satoshis

Intraday Resistance Level – 63.0 Satoshis

The hourly RSI and MACD are positioning for more losses in the near term.

Charts courtesy of Trading View

Source

TheBitcoinNews.com – leading Bitcoin News source since 2012