- We highlighted this past week a contracting triangle pattern on the hourly chart, which acted as a pivot and caused a break.
- There was a downside break as anticipated which took the price towards another important support area of 56.5 Satoshis.
- The price is below the 100 hourly simple moving average (SMA), which is a worrying sign for buyers.
Dogecoin price breached an important breakout pattern this past week, and showing more bearish signs on the hourly chart.
In one of the recent analysis, we highlighted a contracting triangle pattern on the hourly chart. We were looking for a break lower, as there were many bearish signs on the hourly chart, suggesting a break lower. The price cleared the triangle pattern and moved lower. The price after the break traded towards the 88.6% Fib retracement level of the last wave from 53.5 Satoshis to 65.9 Satoshis. There is now a chance of a move towards the last swing low of 53.5 Satoshis where buyers could appear.
One of the most important points is that the price continued to stay below the 100 hourly simple moving average. The mentioned MA is acting as a barrier for buyers, as there are many failures noted around it and buyers failed to take the price above it. If there is an upside reaction moving ahead, then the last swing high of 60.0 Satoshis might come into play where sellers could appear. Any further upsides might be dependent on whether buyers manage a close above the 100 hourly SMA or not.
On the downside, the last swing low of 54.0 Satoshis is an important area and it is where buyers could take a stand.
Intraday Support Level – 54.0 Satoshis
Intraday Resistance Level – 60.0 Satoshis
The hourly RSI and MACD are in the bearish zone and suggesting more losses.
Charts courtesy of Trading View