Having faced volatile price action in the previous week, Dogecoin seems to be entering this week on a calm note. The cryptocurrency is trading in a thin range of 46.6-50 satoshis, with each Dogecoin currently worth 48.2 satoshis.
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An analysis of the 240-minute Dogecoin/Bitcoin price chart reveals that the cryptocurrency may extend its stay in the trading range and no major price moves are expected in the next 48 hours.
Chart Structure – As is evident from the chart above, Dogecoin is oscillating in a wide range of 43-50 satoshis. A breakout from this range will set the stage for a much bigger deviation from the current level. Taking the latest price action into account, a breakout can be expected in the latter half of the week.
Bollinger Bands – The Bollinger Bands continue to play a crucial role in guiding the price movements. The lower range of the BB is acting as a near-term support level while the upper range aligns with the resistance level. The price movements are concentrated around the 20-4h simple moving average of 48.3 satoshis.
Relative Strength Index – Since the action remains muted, the RSI indicator reads a value of 49.7940. A reading close to 50 suggests that neither the bulls nor the bears are willing to pull the game in their favor.
Taking the above technical factors into consideration, it can be said that Dogecoin’s consolidation may continue for a little longer. However, the breakout is expected in the latter half of the week and hence, remaining patient is the key. Short-term traders are advised to go short in the cryptocurrency around 50 satoshis for a primary target of 46.6 satoshis and a secondary target of 43 satoshis. Long positions should be considered only near 43 satoshis. Volatility may remain subdued.
