- Dogecoin’s price managed to recover some ground this past week, but it remains at risk of a move lower during the upcoming week.
- There is an ascending channel pattern forming on the hourly chart (data feed from HitBTC), which is acting as a support.
- A break below the channel support area may call for more losses in the near term.
Dogecoin’s price remains under a monster bearish trend line on the 4-hour chart, and an interesting pattern is forming for the next move.
Ascending Channel Pattern
Dogecoin prices managed to trade a few points higher this past week after trading close to the 28.0-satoshi support area. However, we continuously said that there is a monster barrier near 31-32 satoshis; this prevented the upside move, as the price struggled on a number of occasions to break it. There is an ascending channel pattern formed on the hourly chart (data feed from HitBTC), which may act as a catalyst for the next move.
One important bearish sign to note here is the fact that the price is below the 100 hourly simple moving average. As long as it is under the same there is a possibility of a break down. The hourly relative strength index is below the 50 level, suggesting buyers are finding it hard to take the price higher.
If we look at the price feed CEX.IO, then there is an interesting triangle pattern formed on the 4-hour chart. One key point is that the triangle upper trend line is coinciding with the 31-32 satoshi resistance area. Let us note how long the 28-satoshi support can hold moving ahead.
Looking at the Indicators
4H MACD – The moving average convergence divergence is almost flat, suggesting a consolidation phase before the next move.
Hourly RSI – The relative strength index is just below the 50 level, which is a bearish sign.
Intraday support level – 28 satoshis
Intraday resistance level – 32 satoshis
Charts from HitBTC and CEX.IO; hosted by Trading View