- Dogecoin price continued trading in a range during the past couple of sessions, and remains at a risk of a break.
- There is a breakout pattern forming on the hourly chart with an important resistance around 56.0-57.0 Satoshis.
- Our highlighted double top pattern is still valid, but it is fading slowly as sellers failed to gain momentum.
Dogecoin price continued to consolidate in a range, and currently forming a contracting triangle pattern for a break.
Triangle Pattern
We have been following a double top pattern on the hourly chart, and waiting for a break. However, it looks like the mentioned pattern is fading and the chances of it going in favor of a decline are less, as sellers failed to gain momentum. Currently, there is a contracting triangle pattern forming on the hourly chart, which might act as a catalyst for a break in the near term. We need to see which way the price heads and whether it can move down or not.
On the upside, a break above the triangle might take the price towards a major resistance area towards 56.5-57.0 Satoshis. It represents the double top resistance, and the 50% Fib retracement level of the last drop from 63.0 Satoshis to 51.1 Satoshis is aligned with it. Buyers struggled time and again to break the stated level and it would be interesting to see how the price reacts if it reaches 57.0 Satoshis. A break above the same could take the price towards the next barrier around 60.0 Satoshis.
On the downside, the triangle support trend line holds the key. A break above it may call for more downsides, taking the price towards the last low of 51.1 Satoshis.
Intraday Support Level – 51.0 Satoshis
Intraday Resistance Level – 56.0 Satoshis
The hourly RSI and MACD are showing no signs of bulls, which is a concerning sign.
Charts courtesy of Trading View