Key Highlights
- Dogecoin price is still stuck in consolidation and is hovering near range support against litecoin.
- Momentum for a downside range break seems to be building up, as dogecoin price has made lower highs and is pushing closer to the bottom of the range.
Dogecoin price has been moving sideways for quite some time around a longer-term area of interest and is revving up for a strong downside breakout.
Bears gathering strength
The consolidation is persisting for now, as traders are waiting for more signs of bearish momentum. Short positions are approaching extremes, opening the likelihood of a quick bounce on profit-taking, which might be enough to draw sellers in at better prices.
Stochastic and RSI are both pointing down, which indicates that sellers are still on top of their game and might have enough energy to push for a downside break of the current support at 0.00012LTC.
The 100 SMA is also below the 200 SMA for now but the moving averages are starting to move closer together, hinting at the possibility of an upward crossover. This could lead to a brief rally once oscillators also reach the oversold areas and turn higher.
Price could still bounce to the top of the short-term range at 0.00013LTC before going for a more convincing break below support at 0.00012LTC, possibly dropping to the next lows at 0.00011LTC.
Intraday resistance level – 0.00013LTC
Intraday support level – 0.00012LTC
Charts from TradingView
