Dogecoin Price Analysis for 25/2/2015 – Attacking Support

Dogecoin price traded between 52 and 62 satoshis on Hitbtc throughout yesterday’s trading sessions, yet on Cryptsy, the price ranged between 59 and 60 satoshis.

Let’s take a look at the 4 hour Hitbtc (DOGE/BTC) charts from tradingview.com and plotting the William’s Alligator indicator accordingly (look at the below chart). We can notice the following:

• Dogecoin price has been testing the rising support trend line that we plotted during last week’s analysis. However, whenever a bearish candlestick takes price below that level, the following candlestick is always bullish and takes the price above support. Right now, Dogecoin is trading around 58 satoshis which is above support.
• The alignment of the moving averages of William’s Alligator indicator are not in favor of a bullish wave now, so we are likely to see the price drop to test support at around 57 satoshis during the upcoming few hours.

By studying the 1 day Hitbtc (DOGE/BTC) charts from tradingview.com, plotting the RSI and calculating the MACD indicator (look at the below chart), we can notice the following:

• Yesterday, the price closed just below the support level, yet it opened today well above it.
• The RSI is around 45 at the moment, so we can see the price drop again during the next few hours.
• The MACD indicator’s value is still around zero, and the red signal line is above the blue MACD line, so we can see the price drop shortly, or at least there is no sign of an upcoming bullish wave.

Conclusion:

Dogecoin price is now testing the new support level. Although the price has bounced back up support shortly after breaching it, our technical analysis expects another drop below that support level. Whether or not another drop will lead to a fall below the 52 satoshis level is yet to be determined.

Charts from hitbtc