- Dogecoin price failed to break higher time and again, as there lies a major hurdle for buyers around 72.0 Satoshis.
- 100 hourly moving average continued to stall gains in the short term and prevented upsides.
- There is a possibility that the price is forming a triangle breakout pattern on the hourly timeframe.
Dogecoin price continued to trade in a range and likely forming a contracting triangle for a break in the near future.
What are the chances of a break?
Dogecoin price spiked a couple of times above a bearish trend line highlighted in yesterday’s analysis. However, there was no convincing break above it, which resulted in a minor downside reaction. The downside was also limited, as it looks like there is a triangle pattern forming, which is contracting and might pave the way for a break in the near term.
As mentioned yesterday, there are many hurdles formed on the upside, including the 100 hourly simple moving average, which is acting as a catalyst for buyers. Moreover, the upper trend line, i.e. triangle resistance is sitting around the 100 MA. Lastly a few key fib levels like 50% and 61.8% Fib retracement level of the last drop from 77.0 Satoshis to 63.5 Satoshis are serving as seller’s zone. There looks like a solid resistance area built around 72.0-75.0 Satoshis. If buyers succeed in breaching the triangle resistance area, then there is a high probability that the price might head towards 80.0 Satoshis.
On the downside, the triangle support area might provide support in the short term, followed by the previous swing low of 64.0 Satoshis.
Intraday Support Level – 65.0 Satoshis
Intraday Resistance Level – 72.0 Satoshis
The hourly RSI is just above the 50 level, but there were many such moves recently, so it can be considered as a bullish sign.
Charts courtesy of Trading View