- Dogecoin price cleared a contracting triangle as highlighted recently, and traded lower.
- The price remains under the bearish pressure, which means more losses are possible moving ahead.
- A new weekly low was formed below 55.0 Satoshis, which can act as a support moving ahead.
Dogecoin price suffered more losses and created a new low at 54.5 Satoshis, as buyers failed to hold the downside.
The Dogecoin price weakened Intraday, as sellers managed to clear an important support area in the form of a contracting triangle. We anticipated a break in yesterday’s post, but the direction was not clear. Now, we have a break, and the price also settled below the last low of 55.0 Satoshis more losses are possible. There are a few important points to note. First, the price is now struggling to trade above the broken triangle trend line. Second, it is still below the 100 hourly simple moving average, which is a significant bearish sign. Third, our monster bearish trend line on the hourly chart is still in play that could act as a hurdle if the price attempts to move higher.
Moreover, the 23.6% Fib retracement level of the last drop from 62.0 Satoshis to 54.5 Satoshis is around the 100 SMA. So, it means there is a major resistance forming around 56.5 Satoshis. A break above the mentioned resistance area might turn the bias in favor of buyers in the near term. The next hurdle in that case may be around the 50% Fib level.
On the downside, the recent low of 54.5 Satoshis can be seen as a support area in the short term.
Intraday Support Level – 54.5 Satoshis
Intraday Resistance Level – 56.5 Satoshis
For a change, the hourly RSI is above the 50 level, which might encourage bulls moving ahead.
Charts courtesy of Trading View