Dogecoin price still continues to consolidate on its shorter-term time frames but zooming out to the longer-term chart reveals a downside bias. Looking at the daily chart of DOGE/BTC from Hitbtc shows that technical indicators also support a move lower for the dogecoin cryptocurrency against bitcoin:
- Price has been forming lower highs, reflecting a gradual buildup in selling pressure.
- Dogecoin price has also formed lower lows, which means that sellers are still trying to push the pair lower.
- Stochastic is moving between 60 to 40, just coming off the overbought area and indicating that sellers are taking control of price action.
- The shorter-term exponential moving average (red) is treading below the longer-term EMA (green) on the daily time frame, confirming the longer-term downtrend.
- A break below the previous lows at 40 satoshis could confirm the potential selloff.
A long-term drop could take dogecoin price to 30 satoshis against bitcoin, and this could lead to profit-taking and a quick bounce. An earlier bearish signal might be seen if dogecoin price breaks below the near-term 50 satoshis support level on the shorter-term time frames.
On the other hand, an upside break past the moving averages could show that the cryptocurrency is still holding on to a bit of buying momentum and potentially further gains against bitcoin. For now, the moving averages might also hold as dynamic resistance at 60 satoshis, which might be enough to keep the long-term descending triangle chart pattern intact.
Conclusion
Dogecoin price still hasn’t shown much momentum on the short-term time frames but seems to be biased to the downside on the longer-term chart. Price has been gradually forming lower lows and lower highs, with a potential break of the triangle support likely to indicate that more losses are in order. Technical indicators such as stochastic and moving averages also favor a downside break, which might lead to a drop until 30 satoshis.
