An absolute calm has engulfed Dogecoin as the price remains trapped in a tight range of 50.8-51.9 satoshis. The market is severely testing the patience of the short-term traders, who now fear that a surprise breakout could trigger huge losses. The market may be waiting for a trigger to break free but until that happens, it would only be wise to trade the range with minimum quantities.
Nothing much has changed in the past 24 hours in terms of price (the current value of each Dogecoin is 51.1 satoshis) but the chart structure has definitely transformed from a contracting channel to a rectangular block. Unexcitingly, the technical analysis implemented on the 240-minute Dogecoin/BTC price chart above indicates that the consolidation may continue for an extended period.
Bollinger Bands – The Bollinger bands have failed to spur action in the cryptocurrency until now. And even with the latest levels of 50.6 and 52.3 satoshis, the Bollinger bands are fairly distant from the price range. With BB approaching the Resistance and Support levels (marked in the chart) at a snail’s pace, the wait for some action looks prolonged.
Relative Strength Index – The RSI value aptly reflects the lackluster mood of the cryptocurrency with a reading of 48.8122. Neither the bulls nor the bears seem interested in turning the game in their favor.
Market participants are advised to buy at the lower end of the trading range (marked as the yellow rectangular box) and sell at the higher end. Positions must be kept to a minimum or as per the personal risk appetite. Buy at current levels for a target of 51.9 satoshis by placing a stop-loss (on a closing basis) just below 50.8 satoshis. Staying abreast with news and developments in Bitcoin is also advised to stay ahead of the pack.