Key Highlights
- Dogecoin price continued to move inside a range, but with sellers having the upper hand.
- A downward sloping channel is formed on the hourly chart, i.e. is acting as a catalyst in the short term.
- A break below the 65.0 Satoshis support area might ignite more losses moving ahead.
Dogecoin buyers struggle continued, as they failed to take the price higher, which increases the risk of a break lower.
100 MA as Pivot
There is a descending channel formed on the hourly chart of Dogecoin, which is acting as a catalyst for a downside move. The number of rejections on the upside are more compared with the support rejections. However, there is one more reason why the price struggling to move higher, i.e. the fact that the 100 hourly simple moving average is aligned with the channel resistance trend line. Moreover, the Bollinger Band is also shaping up in line with the channel structure to support the bearish view. And, the 50% Fib retracement level of the last drop from 71.8 Satoshis to 66.0 Satoshis is positioned around the 100 MA to act as a barrier for buyers.
However, we cannot ignore the other side of the coin, as sellers too struggled on many occasions to pierce an important support area at 66.0-65.0 Satoshis. It has increased the possibility of a break higher, as if buyers continue to protect the mentioned level, then they might gain control.
A break above the 100 MA may perhaps clear the way for a move towards the last swing high of 71.8 Satoshis where sellers might step in again.
Intraday Support Level – 65.0 Satoshis
Intraday Resistance Level – 71.8 Satoshis
We need to see how the highlighted channel formation plays, and which way the price breaks. A break on either side might set the price tone for a couple of sessions.
Charts courtesy of Trading View
