After a slight pickup in volatility last week, the dogecoin price settled back in its current range between 47 to 50 satoshis. The 100 exponential moving average (green) has held as resistance, indicating that the consolidation or longer-term downtrend might stay intact.
- Price hit resistance around 51 satoshis last week and proceeded to test the range support near 48 satoshis.
- Stochastic (8,3,3) on the dogecoin price chart from Hitbtc is between 60 and 80 and is moving down, indicating that selling pressure is building up.
- Further declines in the stochastic indicator could mean more losses for dogecoin price, which could once again test the bottom of the range close to 47 satoshis or possibly make a downside break.
- Looking at longer-term time frames confirms that the path of least resistance is to the downside since the downtrend is still intact.
- A shallow bearish divergence can be seen, as stochastic made lower highs while price made slightly higher highs, suggesting more losses for DOGE/BTC.
However, a sudden pickup in buying pressure might still lead to an upside break from the range, which could lead to a short-term reversal for dogecoin price. Take note that darkcoin recently rallied strongly against the bitcoin, partly because of weakening prices for the latter cryptocurrency.
If the downtrend resumes and price breaks below the bottom of its short-term range, dogecoin price could test the previous lows closer to 40 satoshis. This held pretty strongly as a support area though, as the pair formed long spikes upon testing the lows.
Conclusion
Dogecoin price remains in tight consolidation for the time being, despite the small pickup in volatility last week. The moving averages continue to hold as dynamic resistance, keeping gains in check and the downtrend intact. A bearish divergence and overbought stochastic confirm the possibility of a pickup in selling pressure and further losses for the cryptocurrency against bitcoin.
Stochastic (8,3,3) on the dogecoin price chart from Hitbtc is between 60 and 80 […]