[Note: All the price figures are counted in Satoshi]
After testing 743 as its new peak last month, the Dogecoin price appears to be on a constant downtrend, while waiting for a breakout. And in over the last 24 hours, the prevailing long-term bearish trend has further bolstered with the sudden Bitcoin rally towards $266. The DOGE/BTC lost some money there, probably due to the increase in demand of Bitcoins. In the process, the pair retested December 2014’s low around 517, and bounced back towards north a little.
As you can notice the technicalities further in above the 4H HitBTC charts, the Dogecoin price is clearly trending below the black 50H MA curve, while the RSI is in a selling region, around 40. The MACD blue curve is way too below the normal line and saffron signal curve. These indicators conjointly displays a near-term bearish bias in the Dogecoin market.
I have also drawn a pink trend line forming a perfect downward slope between the recent higher highs on a 4H chart. The Dogecoin price therefore is intended to go a little more south in the coming days. But at the same time, it is likely to face strong buying pressure while coming under the aura of 517, December 2014’s support line that initiated a strong rally towards 743.
Nonetheless, much of the Dogecoin future price movement also depends on how the Bitcoin rally transforms in the upcoming days. As of now, the BTC/USD is floating near the new temporary support around 260. If it continues to stay there for long, it is likely for traders to hedge their investments back in the nearest altcoins — Dogecoin one among them. In case of a Bitcoin breakout south, we could also expect a little upward movement in the Dogecoin price, sighting 600 as its next upside risk.
The Dogecoin price is hinting to make a decent reversal in the next few hours. Shorting near 565 would be decently profitable. Meanwhile, try setting your stop losses near 550.
Disclaimer: Cryptocurrency trading is full of unannounced risks and is also subjected to manipulations. NewsBTC.com won’t be held responsible for any of the losses incurred after following the above predictions.
Chart Credit: TradingView.com