- Dogecoin price moved lower and tested the last swing low of 36.5 Satoshis as forecasted in yesterday’s post.
- The price even traded below the mentioned level as sellers succeeded in breaking it to form a new low of 34.7 Satoshis.
- The price is still under the bearish pressure, and the idea to sell rallies look like a good deal.
Dogecoin price formed a new low below 35.0 Satohis, as the bearish pressure overwhelmed buyers who failed to take the price higher.
Selling Rallies a Good Idea?
The Dogecoin price continued to move lower as there was a lot of bearish pressure as anticipated in yesterday’s post. There was a chance of a new low and a test of the last swing low of 36.5 Satoshis. The price did move lower tested the mentioned level, and created a new low of 34.7 Satoshis. Sellers have stepped back for the time being, but the bearish pressure still exists and we cannot discard the chance of another leg lower in the near term.
Currently, the price is trading near the 23.6% Fib retracement level of the last drop from the 49.0 Satoshis (high) to 34.7 Satoshis (low), which is acting as a resistance. However, if there is a break above it, then sellers might take a stand near the 38.2% Fib retracement level of the last drop from the 49.0 Satoshis (high) to 34.7 Satoshis (low).
There are many hurdles aligned around the stated level, as there is a bearish trend line formed on the hourly chart. The highlighted trend line is also positioned with the 100 hourly simple moving average (MA). Overall, there is a major barrier, building near 40.0 Satoshis that might prevent the upside and stall gains.
On the downside, the recent low of 34.7 may act as a support area for buyers moving ahead.
Intraday Support Level – 34.7 Satoshis
Intraday Resistance Level – 40.0 Satoshis
The hourly RSI is still below the 50 level, which supports the view of selling in the short term.
Charts from HITBTC and CEXIO; hosted by Trading View