At BeInCrypto, we complete regular price analyses and predictions for various cryptoassets. In our March 29 analysis of Dogecoin (DOGE), we predicted a price break out from the resistance we have defined below and lead to new highs for the cryptocurrency. Our prediction was validated on Apr 1.
On Apr 1, 2019, the price of Dogecoin (DOGE) reached a low of $0.002.
A rapid upward move ensued as part of a market wide-spike led by Bitcoin—which reached over $5000. By Apr 4, Dogecoin had reached a high of Apr 4, a high of $0.0041.
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!Looks like you’re the CEO now @elonmusk, DM us where to email the access codes 😀 pic.twitter.com/xaftsRZ8MA
— Dogecoin (@dogecoin) April 2, 2019
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.
Ascending Channel
The price of DOGE/USD is analyzed at one-hour intervals from Apr 1 to Apr 4 using data from HitBTC. This is done in order to trace Dogecoin’s current trading pattern.
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.
Bearish Divergence
In order to better assess future price fluctuations, we incorporate technical indicators into our analysis.About the Indicators: The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
On Apr 1, the price made a high of $0.0026. It has been increasing since.
Similarly, the RSI made the first high on Apr 1. However, it has been creating lower values since.
This is known as bearish divergence and often precedes price decreases.
Based on this indicator, it is likely that the price will fall down to the support line of the channel.
Possible Reversal
Resistance and support areas are created when the price visits the same level several times. They can provide reversal areas in case a breakout or breakdown occurs.
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!LEARN ABOUT 0 commision BTC INVESTING HERE!
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.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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.
(I do not have a discord and will not contact you first there. Beware of scammers)
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