- Dogecoin continued to trade in an important range between 60.0 Satoshis and 51.2 Satoshis.
- Buyers/sellers waiting for a catalyst to ignite swing moves and break the range.
In one of the previous week’s analyses, we highlighted a double top pattern on the hourly chart of Dogecoin. There was one more attempt to clear the double top resistance around 60.0 Satoshis, but sellers defended it successfully. However, at the same time, 51.2 Satoshis support area also held downsides a couple of times. We need to see how the technical indicators are aligned for a break of range in the near term. Bollinger Bands on the hourly timeframe also suggest that prices are constrained in a range and chances of a break is increasing.
Trend Line Support
There is a bullish trend line formed on the hourly chart, which is aligned perfectly around the 51.2 Satoshis support area. It means that the highlighted support area holds a lot of importance in the near term, and sellers might face a tough time in taking prices lower.
However, there are a few technical indicators, which suggests that the downside risk is increasing moving ahead. The hourly RSI is below the 50 level, pointing towards weakness in Bitcoin. Moreover, the MACD is also in the bearish zone, which means the possibility of sellers succeeding in taking prices lower is a lot more.
Intraday Support Level – 51.2 Satoshis
Intraday Resistance Level – 60.0 Satoshis
There is a good fight underway between sellers and buyers, and it would be interesting to see who wins it. There might be more range bound moves in the short term until the range is not breached.
Looking ahead, staying on the sidelines is a good option as long as the price is constrained in a tiny range.
Charts courtesy of Trading View