- Dogecoin prices spiked below an important support area of 28 satoshis, but later managed to move back higher.
- The price is caught in a range of 28-33 satoshis, and waiting for a catalyst for the next move.
- As pointed out in yesterday’s post, there is a possibility of a triple bottom pattern looking at the price feed from IO.
Dogecoin’s price is stuck in a range, and that’s why conservative traders can wait for a break—either upwards or downwards—before placing an order.
32-33 as Resistance Area
Dogecoin prices fell below a major support area of 28 satoshis intraday, but somehow buyers managed to protect the downside and pushed the price higher. We can consider the recent slide as a false spike, which means our idea of a triple bottom pattern is still in play. As long as there is no daily close below 28 satoshis, there is a chance that the price may move higher and overcome selling pressure.
If you are looking to trade, then aggressive traders can place buy orders near the 29-satoshi support area once the price bounces off 28 satoshis. There is a major hurdle forming around the 100 simple moving average (data feed from CEX.IO) on the 3-hour chart, which is acting as a barrier for an upside move. If you are a conservative trader, then you can wait for a break above 100 MA before placing an order.
Looking at the price feed via the data feed from HitBTC, there is a trend line resistance area building near 32 satoshis. A break above it could ignite a rally, taking the price towards 36 satoshis.
Looking at the Indicators
Hourly MACD – The hourly MACD is in the bullish zone, pointing to more gains in the near term.
Hourly RSI – The RSI is above the 50 level, suggesting that there may be a break higher.
Intraday Support Level – 28 satoshis
Intraday Resistance Level – 32 satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View