Even with the increased upside momentum seen on the shorter-term time frames of dogecoin price charts, the cryptocurrency is still stuck in consolidation to the bitcoin on the daily chart. A descending triangle formation can be seen, with price hovering at the bottom of the chart pattern.
- The short-term moving average (red) is treading below the long-term moving average (green), indicating that downside momentum is present.
- Moving averages are widening, which means that selling pressure is strengthening.
- Stochastic on the daily time frame of DOGE/BTC from Hitbtc is moving down from the overbought zone, which means that sellers might be more aggressive and push prices lower.
- The near-term support is at the 47 satoshis level, with the next floor at 40 satoshis.
A bounce off the near-term support area might still be possible and lead to a test of the next area of interest at 55 satoshis. An upside break from this level could signal a breakout from the consolidation pattern and a move towards the resistance at 75 satoshis.
On the other hand, a strong downside break from the 40 satoshis key support level might set off a longer-term downtrend for dogecoin price against the bitcoin cryptocurrency. Several positive developments have been taking place in the bitcoin industry after all, keeping its price supported.
However, it seems that risk aversion has been weighing on bitcoin prices earlier in the week, leading to a bit of upside for other altcoins as traders liquidate their holdings.
Conclusion
Dogecoin price is still stuck in consolidation on its long-term time frames, indicating the lack of volatility and momentum for this cryptocurrency. Technical indicators on the daily chart suggest the possibility of a downside break, although support at 40 satoshis seems to have held up strongly. Price could continue to bounce up and down inside the chart pattern until a major catalyst is seen.
Moving averages are widening, which means that selling […]