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 22 analysis, we predicted that Dogecoin would initiate an upward move. Our prediction was invalidated on Apr 24 when price broke down from the channel we defined. To learn more, read our latest DOGE/USD and DOGE/BTC analysis below (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.
Lows of $0.00265 and 50 satoshis were reached on Apr 15 and 22 respectively.
Prices continued dropping in both dollars and bitcoins after Apr 22. At the time of writing, Dogecoin was trading near $0.0025 and 46 satoshis.
Dogecoin (DOGE): Key Trends And Highlights For April 24, 2019
- Dogecoin reached a high on Apr 4.
- It broke down from the support line on Apr 24.
- The breakdown occurred on average volume.
- There is support near $0.0024 and 45 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 to avoid 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 11, the price made a low of $0.00262. Several market cycles were completed and the price reached the same level four times.
Tracing these lows gives us a horizontal support line:
On Apr 24, the price broke down from this support line. If this was a false breakdown, Dogecoin may rebound above the support line in the near future. However, a valid breakdown might lead to more significant and rapid losses.
Breakdown Volume
In order to test the validity of the breakdown, we need to take a look at volume.Volume is a measure of how much of a certain asset is traded in a certain period of time. It can be used to test the validity of the breakdown.
This is traced in the graph below:
We can see from the graph that the breakdown occurred on average volume. This drop might have been a response to the BTC price decrease we saw on Apr 24. Thus, we might be looking a at a false breakdown.
If this is true, Dogecoin may soon rebound above resistance and see the gains we predicted in our Apr 22 analysis. However, first it needs to initiate a reversal.
Possible Reversal
To determine how low prices will go before a reversal, we integrate support areas into this section of the analysis.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.
The closest resistance area is shown for both DOGE/USD and DOGE/BTC below:
The closest resistance area is found near $0.0024 and 45 satoshis. We believe that the price will eventually reach these areas and then rebound above the support line traced above.
Summary of Analysis
Based on our analysis, the price of DOGE is likely to decrease and reach the support area outlined below. We expect that in the future the price will move above the support line of the first section. When do you think DOGE will begin a reversal? 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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