Dogecoin Price Analysis: DOGE/BTC Makes A Breakout Attempt

Since then, however, the DOGE price has been decreasing. At the time of writing, it was trading at 28 satoshis. Where will it go next? Keep reading below and find out. If you want to trade cryptocurrencies safely and securely on our partner exchange, follow this link to get set up on XCOEX. For our previous analysis, click here.

Dogecoin Price: Trends and Highlights for July 9

• Dogecoin is following a short-term ascending support line
• It is trading inside a descending channel.
• The DOGE price made a breakout attempt on July 4.
• The moving averages and the MACD have made a bullish cross.
• There is resistance near 45 and 75 satoshis.

Ascending Support for the DOGE Price

On May 26, DOGE reached a low of 24 satoshis. Since then, it has been increasing, following the ascending support line outlined below: The DOGE price has touched the support line twice. In between these touches, there have been two upward moves of different strength. The one beginning on July 6 almost doubled the value of the price in a span of one day. Let’s take a step back and look at the move from a longer-term perspective.

Descending Channel

Since the beginning of May, DOGE has been trading inside a descending channel. The movement inside it has been gradual — alternating between the resistance and support lines without rapid price swings. However, on July 4, the Dogecoin price made an attempt at a breakout. It reached highs of 44 satoshis before decreasing to close below the resistance line of the channel. Afterward, it found support above the newly created ascending support line. As is visible above, this movement transpired with very significant volume. If the DOGE price continues to follow the ascending support line, which when combined with the resistance line from the wedge creates a symmetrical triangle, it should break out on July 23 the latest. Do the technical indicators support this movement?

Beginning of an Uptrend

Even though the DOGE price recently decreased, it did not stop the 10- and 20-day moving averages (MA) from making a bullish cross on July 8. The Dogecoin price, however, is still trading below both MAs, somewhat reducing the validity of the cross. On a more positive note, the MACD is acting in accordance with the moving averages. A bullish cross transpired on July 6, preceding the MA cross by two days. Furthermore, there has been significant bullish divergence developing since the creation of the channel. The combination of these indicators makes it likely that the price will eventually break out from the channel.

Reversal Areas

If the Dogecoin price breaks out, two resistance areas are outlined below. The first resistance area is found near 45 satoshis. It is created by the lows of November 2018. The failed breakout attempt of July 4 ended inside this area. If the price breaks through it, it should move without much difficulty towards the next resistance area at 75 satoshis.

Summary

The DOGE price has been trading inside a descending channel. On July 4, it made a breakout attempt with massive volume. Even though it was unsuccessful, technical indicators suggest that another attempt may soon transpire. If it does, the price is likely to reach at least one of the resistance areas outlined above. Do you think the DOGE price will reach the first resistance area? What about the second one? 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.