Dogecoin is trading flat on a day-to-day basis after being hit by a bout of volatility. After making some very unnerving moves, the cryptocurrency is trying to stabilize near the current level of 47 satoshis with minor price fluctuations.
By technically analyzing the 240-minute Dogecoin/Bitcoin price chart, it can be inferred that the balance is only slightly tilted in favor of the bears however, the bulls are making strong efforts to keep the losses to a minimum.
Chart Structure – Continuing with the fall post the failed breakout, Dogecoin slipped to a low of a 45.6 satoshis, at which traders started covering their short positions. As can be seen from the chart above, this was the lowest level of the past 5 trading sessions. The cryptocurrency has been slowly and steadily losing its ground, something which is giving the sellers the confidence to always maintain a grip.
Bollinger Bands – The lower range of the Bollinger Bands acted as the catalyst for the upturn post the recent dip. Dogecoin now faces a barrier near the 20-4h simple moving average of 47.6 satoshis.
Relative Strength Index – The RSI indicator has bounced off from a one-week low of 40 to the current value of 46.5732. The latest reading is higher than yesterday’s reading of 45.5992.
Although nothing significant has happened in the past 24-hours, the trading community must remain alert as the cryptocurrency heads into the latter half of the week. It is expected that a major move will rock the Dogecoin market in the next 48-72 hours. Bias is still slightly bearish and any adverse development could send the prices crashing. Traders with a low-risk appetite are advised to stay out of the market until convincing trading signals emerge. Aggressive traders can hold on to their short positions by maintaining a strict stop-loss above 50 satoshis for a target of 43 satoshis.