Dogecoin is currently trading marginally below the yesterday’s level of 47.1 satoshis. The cryptocurrency had surged to a level of 48.9 satoshis before profit booking and selling pressure brought the price down to 47 satoshis, which is closer to the floor value of 46.3 satoshis.
Image: https://www.tradingview.com/x/9XCZT9Ck/
Putting the 240-minute Dogecoin/Bitcoin price chart under a technical lens reveals that the cryptocurrency may continue to face more pressure going ahead unless, bulls stage a powerful comeback.
Dogecoin Chart Structure – As can be seen from the chart above, Dogecoin recently made an attempt to scale higher, but the rally fizzled out near the strong resistance level (marked as the downward sloping line) of 49 satoshis. The level of 46.3 satoshis remains a steady support for the cryptocurrency.
Bollinger Bands – The upper range of the BB continues to be the bears’ mansion. Dogecoin’s efforts to sustain above the level of 48.6 satoshis were put to waste by extreme selling pressure which resulted in the price crashing to 47 satoshis.
Relative Strength Index – With price languishing near the weekly lows, the RSI indicator is telling of a relatively optimistic outlook with a value of 48.5894. Consistent with the price action, the indicator has also formed a base around the 40-mark and has been oscillating in a range of 40 to 55 for a considerable period now. This indicates that the market is expecting an extended consolidation period.
While the Dogecoin bulls are definitely making brave efforts to beat the bears, the bears are proving to be just too powerful. Till this trend continues, it would be best to build short positions on advances up to the resistance level for a target of 47 satoshis. Aggressive and high-risk traders may also consider buying near 46.5 satoshis by placing a stop-loss below 46 satoshis for a target of 48.5 satoshis. High volatility cannot be ruled out.
