Dogecoin has unshackled itself from the tapering price range as it witnessed a massive collapse below the level of 50.8 satoshis to a low of roughly 43 satoshis. However, after much struggle, the cryptocurrency has managed to recoup major losses and is now worth 48.9 satoshis.
Image: https://www.tradingview.com/x/03T2FIYB/
Here, the 240-minute Dogecoin/BTC price chart has been technically analyzed to find new resistance and support levels.
Price Structure – The frightening crash seen in Dogecoin as it failed to rise above the 20-4h simple moving average has seriously damaged the price structure. The cryptocurrency has been trying to regain its ground and leap to its previously held higher ground but bears have been unrelenting in suppressing the bullish intentions. Dogecoin faces strong supply pressure at 50 satoshis which is the New Resistance.
Moving Average – The 20-4h simple moving average continues to assert its dominance as a crucial resistance level. Currently, the 20-4h simple moving average is 49.1 satoshis.
Relative Strength Index – The RSI indicator stooped to a low of 13 following the price fall – the lowest level seen since November last year. Even though the current reading is 48.0177, it seems that a dent has been made and Dogecoin might not recover from it anytime soon. Additionally, it looks like the RSI will also find it tough to cross 50 in the immediate future.
Taking the above indicators into consideration, I would like to advise that selling may resume in Dogecoin and that all long positions must be cleared now. Only short positions should be considered at current levels with a stop-loss placed just north of 50 satoshis. The primary target on the downside is the lower range of the Bollinger Bands (marked in the chart) – roughly 45 satoshis. High volatility struck during the latter part of last week and it is expected that volatility will continue to give us surprises in the coming sessions as well.
