Key Highlights
- Dogecoin price attempted to trade higher, but failed miserably around a bearish trend line formed on the hourly chart (data feed from HitBTC).
- There was a sharp downside reaction after buyers failed to lift the price above the trend line resistance area.
- The price is again trading near the highlighted trend line, which is acting as a hurdle for more gains.
Dogecoin price looks like a sell around the bearish trend line, and as long as it is below it the chances of an upside move is very less.
100 MA and Trend Line Confluence
We were looking to buy with a break above a bearish trend line formed on the hourly chart (data feed from HitBTC). However, there was no break above the trend line and resistance area, and on the other hand, there was a failure causing a sharp downside reaction. The price traded lower and tested the last swing low of 29.0 Satoshis. Thankfully, buyers appeared around the stated level to stall losses.
The price is currently moving back higher, but again facing a barrier near the same trend line and resistance area. Moreover, the 100 hourly simple moving average is also positioned around the trend line along with the 50% Fib retracement level of the last wave from the 35.1 Satoshis high to 29.0 Satoshis low. In short, there is a major resistance formed near 32.0-32.5 Satoshis where buyers may continue to struggle.
A break above the trend line and resistance zone could take the price higher may be towards the 76.4% Fib retracement level (35.1 Satoshis high to 29.0 Satoshis low). On the downside, an initial support can be around 31.0 Satoshis.
Looking at the indicators:
Hourly MACD – The MACD is in the bullish zone, signaling positive signs.
Hourly RSI – The RSI is above the 50 level, which another bullish sign.
Intraday Support Level – 31.0 Satoshis
Intraday Resistance Level – 32.5 Satoshis
Charts from HitBTC hosted by Trading View
