At BeInCrypto, we perform technical analysis of some of the most relevant digital assets in order to predict short-term price fluctuations. In our April 18 analysis of DOGE/USD, we predicted that Dogecoin would initiate an upward move. The price did so later that day; however, it has been decreasing since then. Today, we are performing an analysis of Dogecoin using both a DOGE/USD and DOGE/BTC pair. In the case of BTC, we will be measuring the price of DOGE in satoshis where 1 satoshi = 0.00000001 Bitcoin.
On Apr 4, 2019, the price of Dogecoin (DOGE) reached a high of $0.0041 and 85 satoshis. It has been gradually decreasing since, recently reaching lows of $0.00265 and 50 satoshis on Apr 22.
Dogecoin (DOGE): Key Trends And Highlights For April 22, 2019
- Dogecoin reached a high on Apr 4.
- It broke out from a descending wedge on Apr 13.
- Slight bullish divergence is developing in the RSI.
- There is resistance near $0.0031 and 59 satoshis.
Previous Movement
The price of DOGE/USD is analyzed at two-hour intervals from Apr 4 to Apr 22 using data from HitBTC. This is done in order to trace Dogecoin’s current trading pattern. In order not to create confusion, we will not be using images of the BTC pair until the summary, where the relevant resistance and support areas will be shown in satoshis and dollars.
On Apr 4, the price made a high of $0.0041. A gradual decrease followed.
Until Apr 13, Dogecoin was trading inside a descending wedge:
After Dogecoin broke out from the wedge, it has been trading mostly sideways.
Current Support
On Apr 11, the price reached a low of $0.0026. After a gradual increase, it reached the same levels on Apr 21 and 22. Tracing these lows gives us a horizontal support line:
The price is not following a visible resistance line. If prices begin rising or decreasing, however, a new trading pattern may form.
In order to discern whether or not the price will rise or fall, we need to take a look at some technical indicators.
Technical Indicators
We begin by incorporating RSI into our analysis.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.
Combining RSI bullish/bearish divergence with support/resistance essentially predicts price fluctuations. It traced alongside DOGE/USD in the graph below:
On Apr 21, the price made a low of $0.0026. It reached the same level again on Apr 22. Similarly, the RSI reached the first low on Apr 21. However, they have proceeded to generate higher values.
This is known as bullish divergence and often precedes price increases.
Using these indicators, we believe that the price of Dogecoin will not drop below the support line. To the contrary, it is likely to begin a slow increase.
It should be noted that we have been predicting price gains for some time, and they have yet to materialize. Thus, we still cannot say when Dogecoin will begin its ascent, but we at BeInCrypto still believe that upward movement is forthcoming.
Possible Reversal
To determine future areas of reversal, we incorporate resistance areas into the analysis.Resistance areas are created when the price visits the same level several times. They can provide reversal areas in case a breakout or breakdown occurs.
The closest resistance area is shown for both DOGE/USD and DOGE/BTC below:
The closest resistance area is found near $0.0031 and 59 satoshis. We believe that the price will eventually reach these areas. As stated in the above section, we do not know when the price will rise to this level.
Summary of Analysis
Based on our analysis, the price of DOGE is likely to increase. We do not know whenDogecoin will begin to see new gains, but we expect prices near over $0.003 and around 60 satoshis to be reached at some point in the future. Do you think Dogecoin will initiate an upward move? Let us know your thoughts in the comments below! For long-term price predictions of DOGE/USD, click on the green button 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.
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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