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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.
Will prices continue dropping or will a reversal bring gains back to Dogecoin?
Let’s find out!
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.
In order to test the validity of the breakdown, we need to take a look at volume.
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.
To determine how low prices will go before a reversal, we integrate support areas into this section of the analysis.
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.
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.
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