Dogecoin price continued to consolidate around 48 to 49 satoshis on Hitbtc in the past couple of days, as the lack of a fresh market catalyst kept ranges intact. Trading activity has been subdued in cryptocurrency pairs towards the end of the week, with market participants booking profits off current dogecoin price levels.
- 100 and 20 exponential moving averages are treading sideways and moving closer, confirming range-bound movement between support at 48 satoshis and resistance around 49 satoshis.
- Shorter-term EMA is moving below the longer-term EMA, indicating the possibility of a downside break and potential declines in dogecoin price levels.
- Stochastic is on middle ground as it is moving between the 40 and 60 levels but is pointing downwards, also confirming a potential buildup in selling momentum. The indicator has just left the overbought area and is on its way south, which means that price could move lower too.
- If stochastic moves below the 40 level and makes its way towards the oversold region, DOGE/BTC could drop below the current range support and decline until the move is overdone.
A break lower could mean a move towards the next support level at 44 satoshis for DOGE/BTC. Increased selling pressure and higher bitcoin price levels could mean a move towards 42 satoshis in the near term.
The exponential moving averages could continue to hold as short-term resistance for dogecoin price for now, as these have served as dynamic inflection points in the past.
- Note how price has pulled up to the green moving average (100 EMA) or longer-term inflection point, which has held as resistance in the ongoing downtrend.
- The shorter-term moving average in red (20 SMA) has been trading close to the price, which confirms that consolidation could carry on until strong catalysts for a breakout are seen.
- Volatile moves are usually seen at the start of the week as news reports come in, with the possibility of consolidation taking place towards the end of the trading week.
- Note that price has been dropping since the start of this month, as traders have exchanged their dogecoin holdings for bitcoin.
- Positive developments in the latter cryptocurrency have drawn more demand, with more online merchants accepting bitcoin transactions on their platforms and more exchanges acknowledging the trading potential of BTC.
- On the other hand, an upside break past the short-term resistance at 40 satoshis could lead to a move towards the 50 satoshis dogecoin price level, which might serve as an area of interest and psychological resistance point.
- Further gains past the next resistance point could lead to a test of the 52 satoshis level, which has held as resistance earlier in the month.
Tight consolidation is taking place for dogecoin at the moment but a potential breakout is looming, with technical indicators and long-term trend behavior suggesting a downside move.
Chart from Hitbtc
Looking at the 1-hour chart of DOGE/ BTC from tradingview.com shows that technical indicators are hinting at further consolidation for the meantime: 100 […]