- Dogecoin price weakened this past week and slowly grinded lower to trade near 35.0 Satoshis.
- There was a contracting triangle formed on the 2-hours chart (price feed provided by CEX.IO), which was breached by sellers for a downside move.
- An important support area was broken at 38.0 Satoshis that may now act as a resistance moving ahead.
Dogecoin price fell lower this past week, and broke a critical support area signaling more losses in the short term.
Trend Line Resistance Area
Dogecoin price moved lower this past week, as sellers slowly managed to outpace buyers. There is now a bearish trend line formed on the hourly chart (data feed from HitBTC), which may act as a resistance if the price moves higher from the current or lower levels. The 50% Fib retracement level of the last leg from the 40.5 Satoshis (High) and 35.0 Satoshis (low) is also situated around the highlighted trend line to act as a hurdle for buyers.
One key aspect to note from the charts is the fact that there was a critical support near 38.0 Satoshis, which was breached during the downside drift. So, moving ahead, there is possibility that the stated level might act as a resistance. It also coincides with the highlighted trend line confluence area.
When we analyze the hourly chart of Dogecoin price (data feed from HitBTC), then we get to know that there was a triangle pattern formed that was broken during the recent downside reaction. This is a major bearish sign that points that more losses are feasible in the near term, and if sellers remain in control even 32.0 Satoshis may be tested. The price is now below the 100 hourly simple moving average, which is a bearish sign and could ignite more losses. The next support area on the downside can be around 35.0 Satoshis, followed by the 32.0 Satoshis pivot area.
Looking at the indicators:
MACD – The hourly MACD is about to change the slope to bullish zone, which may call for a short-term correction.
RSI – The hourly RSI is also below the 50 level, pointing that sellers are struggling to gain pace compared with buyers.
Intraday Support Level – 35.0 Satoshis
Intraday Resistance Level – 38.0 Satoshis
Overall, moving ahead we may consider entering a sell trade near the highlighted trend line and resistance area at 38.0 Satoshis.
Charts from HitBTC and CEX.IO; hosted by Trading View