On Apr 1, 2019, the price of Dogecoin (DOGE) reached a low of $0.002.
The price spike was aided by Elon Musk—who called DOGE his favorite cryptocurrency on Apr 2:
A surprise listing on Huobi two day later probably didn’t hurt either.
Dogecoin’s price is going up as the cryptocurrency continues to make the news.
What will happen next?
Keep reading to find out!
Dogecoin (DOGE): Key Trends And Highlights For April 4
- The price of DOGE/USD began an uptrend on Apr 1.
- Dogecoin is trading inside an ascending channel.
- Bearish divergence is developing in the RSI.
- There is support near $0.0026.
On Apr 1, the price made a low of $0.002. Since then, several market cycles have been completed with each low being higher than the previous one.
Tracing these lows gives us an ascending support line:
On Apr 1, the price made a high of $0.0026. A gradual decrease ensued, followed by a gradual increase. The price created several higher highs.
Tracing these highs gives us an ascending resistance line.
The support and resistance lines combine to create an ascending channel:
The channel is a neutral pattern, making price breakouts and breakdowns equally likely. However, since the channel is facing upward, gradual increases at the rate predicted by the channel are to be expected.
Dogecoin has increased at the rate predicted by the channel despite volatility therein. Its most recent spike brought prices near the resistance line. Thus far, there has not been a breakout above resistance.
Based on this pattern, DOGE/USD may drop back toward the support line of the channel in the near future. However, a breakout could lead to accelerated price increases.
In order to better assess future price fluctuations, we incorporate technical indicators into our analysis.
Based on this indicator, it is likely that the price will fall down to the support line of the channel.
The closest support area is found near $0.0026. If a breakdown occurs, it is likely that a reversal could occur in this area. Though we are expecting a drop toward support, we do not expect a necessary breakdown.
If Dogecoin were to reach this level, we would have likely already begun a significant reversal. We do not believe this to be a likely situation.
Summary of Analysis
Based on our analysis, the price of DOGE is likely to fall down to the support line of the channel before increasing at the steady rate predicted by the channel.
Do you think Dogecoin will breakdown below the support? Let us know your thoughts in the comments below!
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.