SPONSORED ARTICLE: Tech Analysis articles are sponsored by SimpleFx - “Keep it simple!”, SimpleFX is a robust online trading provider, offering trading with Forex CFDs on Bitcoins, Litecoins, indices, precious metals and energy. Offers and trading conditions simple and transparent.
- Dogecoin price is forming a major base around 47.0 Satoshis and if buyers gain control, a spike higher is possible.
- There is a crucial bearish trend line formed on the daily chart (data feed from HitBTC), which may play a major role for the bulls.
- The price is also below the 100 simple moving average on the daily chart, suggesting the price is above a major support area.
Dogecoin price struggle continued this past week, but it looks like there is a real chance of it trading higher in the days to come.
Trend Line Break?
Dogecoin price recently traded as low as 47.0 Satoshis where buyers appeared to prevent the downside move. The main reason why the price found support near the stated level was the fact that the 100 simple moving average on the daily chart was positioned near it. The price stalled near the 100-day SMA and currently attempting to trade higher.
There is a major hurdle on the upside for the bulls, as a critical bearish trend line is aligned on the daily chart (data feed from HitBTC). The price struggled many times to clear the same trend line and traded down. However, if the 100-day SMA support holds, then there is a real chance of it moving higher in the near term.
On the upside if the price breaks the trend line and resistance area, then the 23.6% Fib retracement level of the last drop from the 130.0 Satoshis high to 47.5 Satoshis low may be tested. A daily close above the trend line resistance might call for a change in the trend.
Looking at the indicators:
Daily MACD – The MACD is about to change the slope to bullish zone, which is a positive sign.
Daily RSI – The RSI is below the 50 level, which may be a concern for the bulls.
Intraday Support Level – 50.0 Satoshis
Intraday Resistance Level – 60.0-62.0 Satoshis
Charts from HitBTC hosted by Trading View
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.