Dogecoin Price Analysis: DOGE/BTC Has Found Support Above 25 Satoshis

At the time of writing, DOGE was trading near 28 satoshis. Where will it go next? Below, we are going to analyze the DOGE price in different time-frames alongside technical indicators in order to answer this question. For our previous analysis click here.

Dogecoin Price: Trends and Highlights for July 16

• DOGE/BTC is following a horizontal support line
• It is trading inside a descending channel.
• There is bullish divergence developing in the RSI and the MACD.
• There is resistance at 40 satoshis.
• There is very significant support at 20 satoshis.

Horizontal Support for the DOGE Price

Since July 27, DOGE has been following the horizontal support line outlined below. The support line is at 26 satoshis and the price has touched it three times. As long as the DOGE price does not break down below it, it is likely to continue its gradual increase.

Descending Channel

A look at the daily time-frame shows that the DOGE price has been trading inside a descending channel since May 3. At the time of writing, it was trading in the middle of the channel. On July 5, it made an unsuccessful attempt at a breakout. Even though it reached highs above the resistance line, it immediately dropped back inside the channel. A look at the RSI and the MACD suggests that the price will attempt another breakout. We can see that both the MACD and the RSI have been generating bullish divergence since June 24. Therefore, it is likely that the Dogecoin price will eventually break out from the channel. If it does, one resistance area is outlined below. The closest resistance area is found near 43 satoshis. It was reached by the highs of July 5, before the Dogecoin price began to decrease. According to our analysis, the price is likely to reach this area again.

Long-Term Support

A look at the weekly time-frame shows that DOGE is trading at its lowest level since December 2017. There is a very strong support area above 20 satoshis. A breakdown below could trigger a rapid decrease. At the time of writing, that does not seem likely.

Summary

DOGE is trading inside a descending channel. Momentum indicators suggest that the Dogecoin price is likely to break out and reach the resistance area outlined above. Do you think the DOGE price will break out from the channel? Let us know in the comments below. 

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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.  Images are courtesy of Shutterstock, TradingView.