- Dogecoin price surged higher and created a new high above 90.0
- Buyers are in control, as the market sentiment is still favoring them.
This past week in an analysis, we stated that there is a double top pattern forming on the hourly chart of Dogecoin, but the price remains at risk of a break higher as there was no real reason for sellers to take the price lower. As mentioned, the 100 hourly simple moving average is still a major factor for the coming days, as a break below the same might call for a trend change. We highlighted on a number of occasions the importance of the 100 MA, and it proved worth. The price support around it numerous times, and traded back higher.
The price traded above the last high of 89.7 Satoshis, and created a new high. The price stalled around the 1.236 extension of the last leg from the 89.7 Satoshis to 76.0 Satoshis. There was a downside reaction after trading as high as 92.6 Satoshis. There were again bids around the 100 MA, which is around an important support area of 80.0 Satoshis. If sellers manage to breach the 100 MA, then there might be a move towards 74.0 Satoshis. There is a bullish trend line, which is also likely to act as barrier for sellers moving ahead.
The RSI is below the 50 level, which is a worrying sign for buyers in the short term. The MACD is also under divergence, which can ignite a downside reaction.
Intraday Support Level – 76.0 Satoshis
Intraday Resistance Level – 86.0 Satoshis
Let us see which way the price heads, but there is no denial that there is a lot of bullish pressure. Overall, sellers need to be careful, as all the bearish signs can change to bullish in no time.
Charts courtesy of Trading View