At BeInCrypto, we complete regular price analyses and predictions for various cryptoassets. In our Apr 4 analysis of Dogecoin (DOGE), we predicted that the price will decrease to the support area of the pattern we have defined below and possibly breakdown. Our prediction was validated on Apr 5, when the price decreased all the way to the support line and broke down afterward.
On Apr 1, 2019, the price of Dogecoin (DOGE) began an upward move. It reached a high of $0.0041 on Apr 4. It has been gradually decreasing since.
What will happen next? Keep reading in order to find out.
Dogecoin (DOGE): Key Trends And Highlights For April 9
- The price of DOGE/USD began an uptrend on Apr 1.
- Dogecoin reached a high on Apr 4 but has been on a downtrend since.
- It is now trading inside a descending wedge.
- There is support near $0.0026 and resistance near $0.0036
Descending Wedge
The price of DOGE/USD is analyzed at one-hour intervals from Apr 1 to Apr 9 using data from HitBTC. This is done in order to trace Dogecoin’s current trading pattern.
On Apr 4, the price made a low of $0.0041. Since then, several market cycles have been completed with each high being lower than the previous one.
Tracing these highs gives us a descending resistance line:
On Apr 4, the price made a high low of $0.0031. A gradual increase was followed by a decrease. The price made a lower low on Apr 9.
Tracing these lows gives us a descending support line. However, the line has only been touched twice, therefore it is possible that the price will create different levels of support.
The support and resistance lines combine to create a descending wedge. This is a bullish pattern. It suggests price increases and a possible breakout as more likely than price losses or a breakdown.
It is likely that the price will keep decreasing at the rate predicted by the wedge until a decisive move occurs.
In order to figure out the direction of the move, we need to take a look at previous movements alongside technical indicators.
Moving Averages
In order to better assess future price fluctuations, we incorporate moving averages into our analysis. Furthermore, we analyze DOGE/USD at one-day intervals from Dec 2018 to Apr 2019 alongside the 200-day moving average.Moving averages are tools used in technical analysis to smooth out price action. It is a lagging indicator since it is based on past prices. The relationship between prices and moving averages can help in identifying the beginning and end of a trend.
On Apr 3, the price moved above the 200-day moving average.On Apr 9, it decreased below it for a short period of time, before rebounding and finding support above it.
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 keep trading inside the wedge and possibly break out. We do not believe that the price will drop below $0.0026 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.
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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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