- Dogecoin price failed time and again to trade higher and currently following a downward sloping path.
- There is monster trend line resistance area formed on the 4-hours chart (data feed from HitBTC), acting as a hurdle for an upside move.
- A short-term resistance area is now around 31.0 Satoshis. A break above it may ignite a recovery.
Dogecoin price remains at a risk of further declines, as there is hardly any bullish sign for buyers to take it higher in the short term.
Can Buyers Break Trend Line Resistance Area?
As mentioned, there is a crucial trend line resistance area formed on the 4-hours chart (data feed from HitBTC). A key point to note is the fact that the highlighted trend line is perfectly positioned with the 100 simple moving average. It means there is a monster barrier formed near 31.0-32.0 Satoshis that may continue to stall an upside move for Dogecoin price.
Moreover, the highlighted trend line and resistance area is also coinciding with the 38.2% Fib retracement level of the last drop from the 47.8 Satoshis high to 22.7 Satoshis low. A break above the resistance area could call for a move towards the next bearish trend line on the 4-hours chart. However, as long as the price is below 32.0 Satoshis, there are chances of it declining further in the near term.
The price is under bearish pressure, which can be seen on the 1-hour chart (data feed from CEX.IO) as well. There is a minor bearish trend line, acting as a resistance along with the 100 MA.
Selling near 32.0 Satoshis can be an option with a tight stop.
Looking at the indicators:
4H MACD – The MACD may change the slope to bullish, if buyers manage to gain some momentum.
4H RSI – The 4H RSI is just below the 50 level, and might make an attempt to close above 50.
Intraday Support Level – 28.0 Satoshis
Intraday Resistance Level – 31.0 Satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View