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 26 analysis of Dogecoin, we predicted price losses. Our prediction was validated on Apr 26 when Dogecoin reached the support area 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 18, 2019, the price of Dogecoin (DOGE) reached a high of 58 satoshis. It reached a high of $0.00289 on Apr 23. Since then, it has been decreasing, reaching lows of $0.0024 and 45 satoshis on Apr 25.
The price has been increasing since. Where will it go next?
Let’s find out!
Dogecoin (DOGE): Key Trends And Highlights For April 30, 2019
- DOGE reached a high on Apr 4.
- It has been decreasing since and is currently trading inside a descending channel.
- Bullish divergence is developing in the RSI and the MACD.
- There is resistance near $0.0027 and 52 satoshis.
In this section, BTC is analyzed at six-hour intervals from Apr 1 to Apr 30 using data from Bittrex. 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 USD pair until the summary where the relevant resistance and support areas will be shown in satoshis and dollars.
On Apr 8, the price made a high of 59 satoshis. A gradual decrease followed. The price has made several lower highs.
Tracing these lows gives us a descending resistance line:
On Apr 1, the price made a low of 50 satoshis. A rapid increase was followed by a gradual decrease. The price has made one lower low.
Tracing these lows gives us a descending support line.
The support and resistance lines combine to create a descending channel:
It is likely that the price will trade inside the confines of this channel until a decisive move occurs.
In order to predict future price movements, we need to take a look at technical indicators. For this reason, the price of DOGE is analyzed alongside the MACD and the RSI in this section.
About the Indicators:The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
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.
These are traced in the graph below:
On Apr 24, the price made a low of 46 satoshis. It made a similar low on Apr 30.
The MACD and RSI both made the first low on Apr 24. However, they have continued to generate higher values. This is known as bullish divergence and often precedes price increases.
These indicators suggest that the price will begin to increase towards the resistance line of the channel.
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:
The closest resistance area is found near $0.0027 and 52 satoshis. We believe that the price will eventually reach this area.
Summary of Analysis
Based on our analysis, the price of DOGE/USD and DOGE/BTC is likely to increase and reach the resistance area outlined above in the medium-term.
When do you think DOGE will reach the resistance line of the channel? Let us know your thoughts in the comments below!
For long-term price predictions of DOGE/USD, click on the blue 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.