- The Dogecoin price started a correction phase and currently forming a major triangle pattern on the hourly chart.
- Buyers need to step in and take the price above the highlighted triangle for a rally towards 45.0
- Looking at the feed from CEXIO, there is already a break in favor of buyers above a bearish trend line.
Dogecoin price is showing important signs of reversal and eyes a break above the 100 hourly MA for more gains.
Importance of 100 MA
We were anticipating a corrective rally in the Dogecoin price, and it broke the shackles around 30.0 Satoshis. The corrective rally had a good momentum, as the price managed to break an important resistance area in the form of the 50% Fib retracement level of the last leg from the 41.8 Satoshis (high) to 30.6 Satoshis (low). However, it is currently finding sellers near the 100 hourly simple moving average (MA), which also coincides with the 61.8% Fib level (41.8 Satoshis high to 30.6 Satoshis low).
Looking at the feed from HITBTC, there is a triangle pattern forming on the hourly chart, which might pave the way for more gains if buyers gain control and manage to clear it. However, there is a major resistance area formed around 40.0 Satoshis that might act as a hurdle for an upside move. On the other hand, there are positive signs as the price cleared a bearish trend line and the Bollinger Bands started to change direction.
Looking at the indicators:
MACD – It looks like there is a loss of momentum, and the MACD might change the slope in favor of sellers moving ahead.
RSI – It has moved below the 50 level, suggesting buyers may come under pressure.
Intraday Support Level – 35.0 Satoshis
Intraday Resistance Level – 40.0 Satoshis
Overall, if there is a break above the 100 hourly MA, buying could be a good deal.
Charts from HITBTC and CEXIO; hosted by Trading View