DOCK Attempts to Breakout After Two Months of Consolidation

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In Brief
  • DOCK is trading inside a long-term descending parallel channel.

  • There is long-term support and resistance at $0.035 and $0.126, respectively.

  • DOCK/BTC is facing resistance at 260 satoshis.

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Dock (DOCK) has been decreasing inside a descending parallel channel since reaching an all-time high on April 3.

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While the longer-term outlook indicates that a breakout from this channel is likely, short-term indicators point to a decrease prior to the eventual breakout.

DOCK attempts breakout

DOCK has been trading inside a descending parallel channel since April 3, when it reached an all-time high price of $0.182. Such channels often contain corrective movements.

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On May 23, it bounced at both the support line of the channel and the $0.035 support area (green icon). It has been moving upwards since. The support area represents a level that had previously not been reached since Feb. 2021.

DOCK has been moving upwards since and is currently back at the resistance line of the channel. Furthermore, technical indicators have turned bullish. The RSI has just crossed above 50 and the MACD is close to moving into positive territory. In addition, the Stochastic oscillator has just made a bullish cross (green icons). 

If a breakout occurs, the next resistance area would be at $0.126.

Chart By TradingView

Cryptocurrency trader @TheEuroSniper outlined a DOCK chart, stating that he is looking for a flip above the resistance line of the channel in order to enter new positions. As seen above, the token is currently in the process of attempting to break out.

Source: Twitter

Short-term breakout

Despite the bullishness from the daily time-frame, the shorter-term six-hour chart provides numerous bearish signs. 

The ongoing bounce looks like an A-B-C corrective structure, which has significant overlap and is contained inside an ascending parallel channel. In addition, waves A:C have an exactly 1:1 ratio. 

In addition to this, the middle of the channel has now turned to resistance, twice rejecting the token (red icons). 

Therefore, a breakout from the channel could occur, which could take DOCK back to the long-term support area before a potential breakout.

Chart By TradingView

DOCK/BTC

The DOCK/BTC chart looks more bullish than its USD counterpart. The token has been trading below the 260 satoshi resistance level since April 2019. So far, it had made four unsuccessful breakout attempts and is in the process of making the fifth one. 

Technical indicators are bullish. The MACD & RSI are increasing, the latter being above 50. Furthermore, the Stochastic oscillator has made a bullish cross. 

Therefore, an eventual breakout is likely. If so, the next resistance area would be found at 435 satoshis.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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