- Dogecoin price declined recently and cleared a major support trend line, but it turned out to be a false break.
- A contracting triangle pattern is formed, which is likely to pave the way for a break in the near term.
- 100 hourly simple moving average is towards the upside, and acting as a hurdle for buyers.
Dogecoin price declined, but the break was not real, which forced buyers to push the price back higher.
We have been following a couple of patterns this week, and were looking for a break in the Dogecoin price. There was a break yesterday, but sellers failed to maintain strength. As a result, the price moved back higher and traded above 65.0 Satoshis. The price is now trading comfortably above 62.0 Satoshis, but there is a contracting triangle pattern formed on the hourly chart. The highlighted pattern is on the verge of a break, and the chances of the price moving lower is more compared with a break higher.
There are many hurdles lined up on the upside, including the 100 hourly simple moving average. Moreover, there is still no convincing break above the 50% Fib retracement level of the last drop from 79.0 Satoshis to 58.9 Satoshis. The hourly RSI is below the 50 level, which is a negative sign for buyers in the short term.
On the downside, the triangle support area is aligned with an important level of 65.0 Satoshis. We need to see if the price can continue finding bids and whether it can trade higher or not moving ahead. If sellers gain control, then a break below 64.0 Satoshis might take the price towards 60.0 Satoshis.
Intraday Support Level – 62.0 Satoshis
Intraday Resistance Level – 68.0 Satoshis
The hourly MACD is neutral and pointing towards more consolidation.
Charts courtesy of Trading View