After a few days of tight consolidation, dogecoin price indicated further upside after breaking to the top of its range on the short-term chart. Looking at the 4-hour dogecoin price chart against bitcoin from Hitbtc shows that this pair might gain upward momentum.
- Dogecoin made a strong bullish candle in the recent sessions, even breaking above the longer-term moving average (green).
- Candlesticks closing above the long-term EMA might be an early signal of a trend reversal, but for now the shorter-term EMA is treading lower and suggesting that the downtrend could carry on.
- The 100 EMA has held as a dynamic resistance point in the past and may continue to do so.
- Stochastic is right between 20 and 40 but is pointing higher, suggesting that further upside is possible.
If the resistance at the 100 EMA holds, price could still retreat to the range and possibly test support at 47 satoshis. A follow-up moving average crossover, however, might indicate that a longer-term uptrend is about to take place, with price potentially heading up to the next area of interest at 55 satoshis.
The recent pickup in volatility was probably spurred by the FOMC statement, which saw dollar losses during the actual event. This also seemed to spark a bitcoin sell-off across the board, as traders probably reduced their higher-risk holdings afterwards.
If the longer-term dogecoin price sell-off resumes, the cryptocurrency could trade as low as 40 satoshis eventually. However, this support area hasn’t been tested in a while and it appears that market participants are trying to push dogecoin price action a little higher.
While the longer-term downtrend for dogecoin price is still intact, the recent upside break from the tight consolidation suggests further upside in the short run. The moving averages might still hold as dynamic inflection points but stochastic is also supporting more buying pressure for the cryptocurrency.
Chart from hitbtc