- Dogecoin price continued to trade inside a contracting triangle pattern formed on the hourly chart, as highlighted in yesterday’s analysis.
- The last low of 52.5-6 acted as a hurdle for sellers one more time and prevented losses.
Dogecoin price might spike higher in the near term, as sellers failed many times to take it below 52.5 Satoshis.
The Dogecoin price traded a touch lower once more, but found support near the last swing low of 52.5 Satoshis that acted as a barrier for sellers. The contracting triangle pattern formed on the hourly chart continued to act as a catalyst as the price moved inside it and failed to break it. However, it looks like buyers are struggling to hold the ground as sellers made a couple of attempts to clear the triangle support area. On the other hand, we cannot deny that there are many failures noted around 52.5 Satoshis, which means there lies a risk of bounce in the near term.
The price is currently trading below the 100 hourly simple moving average, so if buyers need to gain pace they need to break the stated MA. However, the most important resistance can be seen around the triangle upper trend line, as it is positioned with the 23.6% Fib retracement level of the last drop from 58.4 Satoshis to 52.6 Satoshis. A break and close above the triangle might call for more gains in the near term may be towards the 50% Fib retracement level.
If the price moves lower, the triangle lower trend line might come into play along with the last swing low of 52.5 Satoshis.
Intraday Support Level – 52.5 Satoshis
Intraday Resistance Level – 54.0 Satoshis
The hourly RSI is around the oversold readings, suggesting that a move higher is possible.
Charts courtesy of Trading View