Dogecoin Price Technical Analysis For 23/12/2015 – Trendline Proves Worth – The Basics about Cryptocurrency

  • Dogecoin price is forming a monster ascending channel on the hourly chart (data feed from HitBTC), which can prove vital in the short term.
  • The price is currently trading around the channel support area, as sellers are trying their best to break it and take the price lower.
  • A successful close below the 100 hourly simple moving average may ignite a downside move.

Dogecoin price is following an ascending channel on the hourly chart, and if sellers manage to break it then a move towards 26.0 Satoshis is possible.

Buy above 100 MA?

Dogecoin price is showing a few bullish signs, as there is a major ascending channel on the hourly chart (data feed from HitBTC). The highlighted channel pattern is acting as a support and taking the price slowly higher. However, the price is currently struggling to gain momentum, and trading near the channel support area. There were a couple of false spikes below the support area as well, but there was no successful close below it.

The most important point is that the sellers are making an attempt to take the price below 100 MA and settle below it. If that happens, then there is a chance of a break below the channel support area. On the other hand, if the price remains above 100 MA, then it may present us a buying opportunity.

The channel support area is also coinciding with the 50% Fib retracement level of the last wave from the 26.5 Satoshis low to 32.6 Satoshis high. It means the channel support area holds a lot of importance and it won’t be easy for sellers to break it.

Looking at the indicators:

Hourly MACD – The MACD is in the bearish zone, which may encourage sellers to take the price down.

Hourly RSI – The RSI is also below the 50 level, which is another bearish sign.

Intraday Support Level – 29.0 Satoshis

Intraday Resistance Level – 32.0 Satoshis

Charts from HitBTC and CEX.IO; hosted by Trading View