Dogecoin price action in the last 24 hours is enough to send shivers down the spines of even the best of traders. I had discussed in my earlie analysis that the price structure has turned in favor of the sellers and that volatility will rock the market participants again. Both the things seemed to have played out convincingly as the price stooped to a low of 39.8 satoshis – almost retesting the March lows of 38.9 satoshis – before rising sharply back up to threaten 50 satoshis.
Each Dogecoin is currently worth 49.8 satoshis.
Amid this volatility, let us find out if Dogecoin has undergone a materialistic change. The 240-minute Dogecoin/Bitcoin price chart has been presented above.
Chart Structure – The chart structure still supports bears as the bulls fail to cross two major resistance levels – the 20-4h simple moving average and the New Resistance (both marked in the chart above). Each and every attempt at scaling these two mountains has been suppressed by profit booking and fresh shorting. It must also be observed that Dogecoin hit a fresh 1-month low of 39.8 satoshis, breaking below the previous supports of 43 satoshis (marked above), which clearly indicates that bears are holding the aces in this game.
Relative Strength Index – The RSI reading of 53.3033 indicates that the bulls are regaining strength, however, it must be added that the reading might be ‘misleading’ given that the resistance levels still hold.
High volatility has made it terribly difficult for short-term traders to manage their positions efficiently. Hence, market participants may choose to stay out of the market until volatility settles. Those interested in trading are advised to stay on the short side by maintaining a strict stop-loss above 50 satoshis (closing basis). Huge losses may incur, so position wisely and stay alert!