The contraction in Dogecoin has reached a whole new level. Earlier, the price was oscillating between 50-52 satoshis, before being clipped to 50.8-51.9 satoshis. However, April seems to have brought out the tightest possible range – 50.8-51.2 satoshis. Each Dogecoin is currently worth 50.9 satoshis.
Image: https://www.tradingview.com/x/6Nu8JvRj/
The 240-minute Dogecoin/BTC price chart has been technically analyzed below to determine what is causing the pressure on the cryptocurrency and the key levels to look forward to.
Moving Average – The Dogecoin price is facing stiff resistance near the 20-4h simple moving average of 51.2 satoshis. This is a particularly interesting development because, in the last week of March, the market was paying no respect to this technical level. The current value of Dogecoin is also at a sniffing distance from the support level of 50.8 satoshis (marked in the chart).
Relative Strength Index – The RSI indicator has dipped marginally from its yesterday’s level of 48.8122 to the current level of 47.0184.
Bollinger Bands – Due to the lackadaisical movement of the cryptocurrency, the Bollinger Bands are also turning south. The lower range of the BB (which generally acts as a support) has dropped from yesterday’s 50.6 satoshis to 50.5 satoshis today. The upper range (acts as the resistance) has fallen relatively more from 52.3 satoshis to 52.1 satoshis.
There is no doubt that the present consolidation is testing the patience of many traders and speculators. Those who are long in this counter can hold on to their positions until the support level of 50.8 satoshis is breached. Fresh long positions can also be made at current levels for a target of 51.8 satoshis by placing a stop-loss (closing basis) below 50.8 satoshis. This makes the risk-reward ratio highly attractive for the market participants. Staying abreast with the latest news and developments is also advised.
