- The Dogecoin price–after failing to break the 35-36 satoshi resistance area–started to consolidate in a range.
- There is a contracting triangle pattern forming on the hourly chart (price feed from HitBTC) that may act as a catalyst for the next move.
- As mentioned earlier, the price remains at a risk of more losses as long as it is below the stated resistance area.
Dogecoin price started to consolidate intraday, and is currently looking for a reason to move higher. Let’s analyze whether buyers can step in or not.
Contracting Triangle Formation
We recently highlighted in a technical analysis post that Dogecoin price may struggle to clear the resistance building near 35 satoshis. Buyers tried to clear the stated level, but failed. Currently, the price is forming a contracting triangle pattern forming on the hourly chart (price feed from HitBTC). If we look closely, more range trading moves with resistance near 35 satoshis and support near 32 satoshis.
The 100 hourly simple moving average is acting as a pivot for the price as of now. We need to see how long the price can consolidate and which way it moves after a break. There are some positive signs emerging for buyers, but they are not convincing enough to take the price higher.
The most important point is that even if the price moves higher, there are other hurdles on the upside. There is a bearish trend line on the hourly chart with the data feed from CEX.IO. Moreover, current buyers are finding it hard to break the 50% Fibonacci Retracement level on the last drop from the 40-satoshi high to 30-satoshi low.
Overall, let’s wait for a break in order to get a clear view moving ahead.
Looking at the indicators:
Hourly MACD – The hourly MACD is in the bearish slope, and suggesting more losses.
Hourly RSI – The RSI moved above the 50 level, which may encourage buyers.
Intraday Support Level – 30 satoshis
Intraday Resistance Level – 35 satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View