On Apr 18, 2019, the price of Dogecoin (DOGE) reached a high of 58 satoshis and $0.0033. Since then, it has been decreasing, reaching lows of $0.0024 and 45 satoshis on Apr 25.
A gradual increase occurred in the USD pair but not in the BTC one. The price reached highs of $0.0029 on May 4.
Where will it go next?
Let’s find out!
Dogecoin (DOGE): Key Trends And Highlights For May 6, 2019
- Dogecoin reached a high on Apr 18.
- A sharp drop took it to a low on Apr 26.
- It has been increasing since, trading inside a symmetrical triangle.
- It is trading inside a short-term descending wedge.
- Bullish divergence is developing in the RSI and the MACD.
- There is support near $0.0025 and 44 satoshis.
In this section, DOGE is analyzed at four-hour intervals from Apr 1 to May 6 using data from HitBTC. 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 BTC pair until the summary where the relevant resistance and support areas will be shown in both satoshis and dollars.
On Apr 8, the price made a high of $0.00305. Several market cycles have been completed and the price has created a lower high each time.
Tracing these highs gives us a descending resistance line:
On Apr 25, the price made a low of $0.002381. A gradual increase ensued. The price has been following an ascending support line.
The support and resistance lines combine to create a symmetrical triangle:
It is likely that the price will trade inside the confines of this triangle until a decisive move occurs. In order to predict the direction of the move, a look at a shorter time-frame combined with technical indicators is required.
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 at 30-minute intervals alongside the MACD and the RSI in this section.
These are traced in the graph below:
Since making a high on May 4, the price has been trading inside a descending wedge.
The same day, the price reached a low of $0.00264. It proceeded to generate another low of $0.00260 on May 6.
Similarly, the MACD and RSI both made the first low on May 4. 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 wedge and eventually the resistance of the triangle.
If, however, a breakdown occurs, where will the price find support?
The closest resistance area is shown for both DOGE/USD and DOGE/BTC:
The closest support area is found near $0.0025 and 44 satoshis. If a breakdown occurs, the price may reach this area. We do not believe this to be likely. To the contrary, we believe the price will increase towards the resistance line of the triangle at $0.0028 and 50 satoshis.
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. This means we may see Dogecoin reach the psychological threshold of 50 satoshis.
When do you think DOGE will reach the resistance line of the triangle? Let us know your thoughts in the comments 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.