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Dogecoin price has been consolidating tightly on its short-term time frames but zooming out to the longer-term charts shows a potential reversal. In fact, a doji candlestick has formed on the weekly time frame, awaiting confirmation for a possible rally.
- The next weekly candle has to close above the previous doji’s high before confirming the bounce off the current support levels.
- A long-term climb could last until the next resistance at 60 satoshis.
- Stochastic on the daily time frame of dogecoin price on Hitbtc is moving between 20 and 40 on its way up, indicating a possible pickup in buying pressure.
- Should the next candle close below the previous doji’s lows near the 40 satoshis level, the reversal candlestick would be invalidated and the downtrend in dogecoin price might resume.
In addition, a bullish divergence can be seen on the same daily time frame of the darkcoin price, as the crypctocurrency formed lower lows while stochastic drew higher lows. This also adds confirmation to the idea that prices might be in for a reversal from the recent drop.
Further gains past the next area of interest at 60 satoshis could lead to a climb up to the next highs closer to 80 satoshis. This largely depends on developments in the dogecoin industry though, as it seems that bitcoin has been seeing better progress lately.
Dogecoin/BTC could undergo further selling pressure if bitcoin continues to gain stronger mainstream acceptance, with more merchants and customers drawn to the appeal of using the cryptocurrency in doing transactions. However, more modernized companies have also allowed their payment systems to accept dogecoin and other forms of altcoin as well.
A break below the long-term support level at 40 satoshis could lead to a tumble to the next floor close to 20 satoshis, which has kept losses in check since the cryptocurrency was introduced earlier on.
