Dogecoin price on the 4-hour chart from Hitbtc is giving mixed signals, with the cryptocurrency pair enjoying increased volatility recently. Price has tossed around inside its short-term range but made a few spikes higher and lower, as buyers and sellers still can’t pick a clear direction for price action.
Technical indicators on the same time frame are giving mixed signals, with some suggesting a potential reversal from the longer-term drop and others suggesting a potential continuation of consolidation.
- The short-term EMA is still treading below the longer-term moving average, which means that the downtrend is still intact for now. However, the EMAs are edging closer together, suggesting the possibility of an upward crossover.
- An upward EMA crossover could be an early signal that a reversal is bound to take place and that dogecoin price rallies are in order.
- Stochastic (8,3,3) is moving down from the overbought zone and is currently between the 60 to 80 range, indicating the presence of selling pressure.
- Price has formed higher lows on its recent spikes below the range, which suggests that buyers are trying to keep the pair afloat.
- The recent upside break from the tight range has been faded quickly and price is retesting the range resistance at 50 satoshis.
Longer-term time frames of dogecoin price against bitcoin show that the pair is trading at the bottom of a falling trend channel, which seems to be holding as support. If price continues to gain upside momentum following its recent bounce, a short-term reversal might take place.
Conclusion
Dogecoin price is showing signs of moving higher, even as price has been falling back inside its consolidation range. Sustained buying momentum could lead to an upward EMA crossover, which would confirm a potential short-term climb. However, stochastic is still suggesting that selling pressure is increasing and that price could resume its long-term drop.
