Dogecoin Aims to Hit the Moon! (Price Analysis for DOGE: March 5)

As time passes, the coin continues to thrive. Will it be able to continue surviving into the future or will Dogecoin prove to be just another bad joke?

Key Highlights For March 5, 2019

• The price made a swing low at $0.018.
• A gradual recovery took it to the previous high at $0.0022.
• The $0.0022 high was reached four times, creating a resistance line.
• There are support areas at $0.0194 and $0.0181.
• There is bullish divergence developing in the MACD.
• The price is trading at $0.002.

Horizontal Resistance Line

The price of DOGE on Binance is analyzed in 4-Hours intervals from Jan 15  to Mar 5, 2019. A high of $0.022 was reached on Jan 14. Over the next month and a half, the price was reached three more times. Tracing these points creates a horizontal resistance line. The number of times the line is touched and its validity have a positive correlation.

Possible Support Line

The price made a swing low of $0.00187 on Feb 11. A gradual increase followed. Tracing successive highs creates an ascending support line with three points. A Choppy market occurs when prices have considerable up and downswings. It is characterized by frequent wicks. Due to the choppiness of the market, support and resistance lines can be inaccurate. Despite market choppiness, it appears that Dogecoin may ride the ascending support toward the horizontal resistance. It is unknown when or if it will break this resistance.

The Inverted Head And Shoulders

An inverse head and shoulders pattern is identified when the price follows several characteristics:

• First, the price falls to a swing low and then rises.
• Then the price falls to a lower low.
• Subsequently, a rise brings the price up to its initial level.
• Finally, the price falls again but not as far as the second low.

The price of DOGE shows some of the characteristics. An upward movement to the resistance line would validate the pattern.

Making Sense Of It All

The Moving Average Convergence Divergence (MACD) explores the relationship between two moving averages (long and short-term) and the price. It is used to measure gauge the strength of a move. The price made a low of $0.002 on Mar 1. It made a lower low of $0.00197 on Mar 4. The MACD did not act in an identical manner. Instead, the lower low of Mar 4 had a higher MACD score. This is called bullish divergence, and can often predict areas of a trend reversal. In conclusion, while there is no clear structure in place, it is likely that price will create a bullish pattern. Support areas are likely to be found at $0.00192 and $0.00181. Price may consolidate for a period and eventually make an attempt at breaking out of the resistance line. If this occurs, price increases above $0.002 are to be expected What type of movement do you think DOGE will make? Will it break the resistance line and hit the moon? Let us know your thoughts in the comments below, and check out our latest Bitcoin Price Predictions! 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.