Dogecoin is struggling hard to free itself from the clutches of the bears, but the efforts are yielding no positive results. Very recently, the cryptocurrency dropped to a fresh year-to-date low of 36.3 satoshis, and as can be seen from the image below, it retested that bottom on the first trading session of May.
Under strong bearish pressure, Dogecoin has dropped from yesterday’s 42.8 satoshis to 36.3 satoshis today.
Let us technically analyze the 240-minute Dogecoin/Bitcoin price chart to revise our resistance and support estimates.
Dogecoin Chart Structure – Dogecoin is in a lower top, lower bottom trend. The bearish pressure is severely limiting the upside potential of the virtual currency which is now struggling to sustain its head even above 44 satoshis. The highest level of the past 8-4h candles has been just 44.8 satoshis.
Bollinger Bands – The cryptocurrency is significantly below the support provided by the lower range of the BB, indicating that the price may rebound temporarily. On the upside, Dogecoin is peaking out near the 20-4h simple moving average of 43.9 satoshis.
Volume – Volume activity remains fairly strong in this battle.
Relative Strength Index – The RSI indicator has recorded a steep cut in the strength reading, which fell from nearly 50 to 32.6585. Declining strength reading is a red flag that market participants must pay attention to.
From the mentioned technical factors, it can be said with confidence that buyers must be profusely bleeding their hands. Since the market has adjusted to lower peaks, it is best to revise the shorting levels down to 45-46 satoshis for a target of 38 satoshis. Market participants can also adopt a distributed strategy; they can create short positions at current levels using 40% of their funds, and continue to do so upon significant advances while maintaining a stop-loss above 47 satoshis. Do not buy until the downtrend is reversed!
Under strong bearish pressure, Dogecoin has dropped from yesterday’s 42.8 satoshis to 36.3 satoshis today. Image: https://www.tradingview.com/x/k4O7Dnv1/ Let us […]