- Dogecoin price grinded lower and cleared a major support trend line on the 2-hours chart (price feed from CEX.IO).
- A new low was formed below 35.0 Satoshis, as our highlighted trend line and resistance area in the weekly analysis proved worth.
- The price is under a lot of bearish pressure, and if sellers remain in action there is a chance of a move towards 30.0 Satoshis.
Dogecoin price may continue to weaken, as buyers are finding it really hard to take control and as a result, more losses are likely.
100 MA as Pivot
Dogecoin price faced a tough time around a major resistance area of 40-41.0 Satoshis where sellers managed to overcome buying pressure and pushed the price back lower. There was a support trend line on the 2-hours chart (price feed from CEX.IO), which was broken during the recent slide. Furthermore, the price settled below the 100 simple moving average (2-hours), signaling weakness in the price.
It looks like the price is about to test the 61.8% Fib level of the last move up from the 28.9 Satoshis (low) to 41.0 Satoshis (high). A break and close below the mentioned fib level could ignite more losses that can take the price towards the 30.0 Satoshis support area where buyers might appear. However, an intermediate support can also be around the 76.4% Fib level of the last move up from the 28.9 Satoshis (low) to 41.0 Satoshis (high) at 31.7 Satoshis.
If the price makes an attempt to correct higher from the current levels, then there is a bearish trend line formed on the hourly chart (price feed from HitBTC) that may act as a barrier for more gains. An initial resistance can be around the 23.6% Fib retracement level of the last drop from the 40.8 Satoshis (high) to 34.2 Satoshis (low). The most interesting thing to note from the hourly chart is that the 100 simple moving average is positioned with the highlighted bearish trend line.
So, we can say that there is a monster resistance building around 35-36.0 Satoshis where buyers may struggle. A break and close above the same could ignite a deeper correction in Dogecoin price moving ahead.
Looking at the indicators:
Hourly MACD – The hourly MACD is in the bearish slope, and there is no sign of a trend change.
Hourly RSI – The RSI is below the 50 level, which is another bearish sign and a warning for buyers.
Intraday Support Level – 32.0 Satoshis
Intraday Resistance Level – 36.0 Satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View