- Dogecoin breached an important bearish trend line as highlighted in yesterday’s analysis.
- More gains are likely if buyers manage to take the price above 72 Satoshis.
- On the downside, the broken trend line might now act as a support in the near term.
We will stick to the plan of buying once there is a convincing break above 72.0 Satoshis moving ahead.
How crucial is the trend line break?
Yesterday, we highlighted an important bearish trend line on the hourly chart, and were expecting a break above the same. There was an upside move as buyers managed to take the price higher. However, we also stated that there lies a monster barrier around 72.0 Satoshis, which holds the key for more gains in the near future. Now, the recent break is convincing, but the price needs to settle above 72.0 Satoshis, i.e. the range resistance before we witness more upsides. Buyers cleared all major hurdles until now, including the 88.6% Fib retracement level of the last drop from 71.8 Satoshis to 66.6 Satoshis, which is at 73.1 Satoshis.
Currently, the mentioned resistance area at 72.0 Satoshis is aligned with the Upper Bollinger Band. So, let us see whether sellers manage to defend a break this time or not. A break above 72.0 Satoshis may perhaps set the price for a move towards the 1.236 extension of the last drop, which is at 73.1 Satoshis. Any further gains could take the price towards 75.0 Satoshis.
If the price moves lower from the current levels, then the Middle Bollinger Band could provide support, followed by the all-important 100 hourly simple moving average.
Intraday Support Level – 70.0 Satoshis
Intraday Resistance Level – 72.0 Satoshis
The hourly RSI has slightly dipped below the 50 level, which is a worrying sign in the short term.
Charts courtesy of Trading View