- Dogecoin price continued to struggle to trade higher, as a major bearish trend line is protecting gains.
- 100 hourly moving average is still a major deciding factor for more gains as highlighted in yesterday’s forecast.
- On the downside, 64.0 Satoshis remains a pivot area for sellers.
Dogecoin price consolidating below the bearish trend line, as the chances of a break higher increase with each failure to move lower.
What are the chances of a break?
Dogecoin price continued to test a critical bearish trend line as highlighted in yesterday’s analysis. There are at least 10 attempts as of now to break the stated trend line, but sellers managed to defend it every time. One key aspect to note is that sellers also failed to take the price lower especially below 64.0 Satoshis. So, there seems to be a range bound move in the short term.
The 100 hourly simple moving average is also playing its role and acting as a barrier for buyers. It is aligned perfectly with the same bearish trend line. Moreover, there has been a continuous struggle to settle above the 61.8% Fib retracement level of the last drop from 77.0 Satoshis to 63.5 Satoshis. We can say that 72.0-74.0 Satoshis is turning out to be a major resistance area for buyers in the near term. If there is a move above the mentioned resistance area, a test of 80.0 Satoshis is likely. Else, we might witness a downside reaction during the coming sessions.
On the downside, the Lower Bollinger Band expanded and aligned with the previous low of 63.5 Satoshis, which can be seen as a support.
Intraday Support Level – 67.0 Satoshis
Intraday Resistance Level – 72.0 Satoshis
The hourly RSI is below the 50 level, which is a warning sign in the near term.
Charts courtesy of Trading View