Dogecoin is still trapped in a very tight range; continuously vacillating between 50.2 Satoshis and 52 satoshis as the buyers and the sellers test each others’ patience. Such prolonged constriction also suggests that the big players may be staying on the sidelines and waiting for a trigger to get back into action. Each Dogecoin is currently worth 50.8 Satoshis.
I have presented above the 240-minute Dogecoin/BTC price chart and overlaid a couple of technical indicators to estimate the future price movements. Here are some interesting revelations from that:
- Bollinger Bands Support – As can be seen from the chart above, the lower range of the imposed Bollinger Bands is at 50 satoshis, which acts as a strong floor to the price. The upper range of the BB is at 52.8 satoshis. The market is, however, paying no attention to the 20-4h simple moving average of 51.5 satoshis violating it numerous times in the oscillations.
- Relative Strength Index – The RSI reading of 48.2730 reflects that the current scenario is almost evenly balanced. But it must be noticed that the index itself has been fluctuating in a small range as well on account of the contraction in the Dogecoin prices, and hence offers no serious clues on the future direction of prices.
But, the small price range can be utilized as a trading opportunity; buying as the price approaches $50.8 satoshis for a target of 52 satoshis, by placing a stop-loss just below $50.6 satoshis (on a closing basis). With this must be taken into account that the price has already spent considerable time in the range and the base of the Bollinger Band is getting extremely close to the price range, thereby increasing the chances of a breakout. But until Dogecoin breaks free, range trading can be done with small quantities.