- Dogecoin price traded lower and might continue to move lower if a major support area near 40.0 Satoshis is broken.
- There are a couple of bearish trend lines formed on the hourly chart, which is likely to act as a resistance.
- We need to see whether the price stays above 40.0 Satoshis or not as it holds the key in the near term.
Dogecoin price moved sharply lower and there are chances that it might continue to head lower if there is a break below 40.0 Satoshis.
The Dogecoin price headed lower this past week, and once there was a break below a crucial level 50.0 Satoshis, there was a sharp downside move. There are a couple of bearish trend lines formed on the hourly chart, which are acting as a hurdle for an upside move. As long as the price is below the highlighted trend line and resistance area, there is a chance of a move towards 35.0 Satoshis. However, we should keep an eye on another critical level, i.e. 40.0 Satoshis. If there is a daily convincing close below the stated level, then sellers might be able to take the price further lower in the short term.
If there is a move higher from the current levels, then an initial resistance can be seen around the 23.6% Fib retracement level of the last leg from 49.0 Satoshis to 39.9 Satoshis. A break about the same might put the price for a test of the highlighted bearish trend line.
On the downside, if there is a large move below 40.0 Satoshis, then more losses are possible moving ahead.
Intraday Support Level – 40.0 Satoshis
Intraday Resistance Level – 44.0 Satoshis
The hourly RSI is below the 50 level, which means there is a possibility of more losses.
Charts courtesy of Trading View