At Cryptotreat, we offer regular price analyses of Dogecoin (DOGE) and other cryptocurrencies. Today July 23 we are beginning a new series price analyses for top cryptocurrencies including Dogecoin (DOGE).
On June 26, 2019, the Dogecoin price reached a low of 24 satoshis. A gradual increase began, which intensified on July 5. The DOGE price reached a high of 44 satoshis, before decreasing below 30 satoshis.
At the time of writing, it was trading at 28 satoshis.
Will DOGE begin another upward move?
Dogecoin Price: Trends and Highlights for July 23
- DOGE/BTC is following a short-term ascending support line.
- It is trading inside a long-term descending channel.
- The price is facing close resistance from several moving averages.
- There is support near 25 and 15 satoshis.
Ascending DOGE Price Support
Since reaching the aforementioned low on June 26, the DOGE price has been gradually increasing, following the ascending support line outlined below:
At the time of writing, it was trading right on the support line.
Let’s take a look at a longer time-frame to put this support line into perspective.
A look at the daily chart shows that DOGE has been trading inside a descending channel since May.
Except for the attempted breakout on July 5, the movement within the channel has been devoid of fluctuations.
This occurrence makes it more likely that the DOGE price would continue trading inside the confines of the channel.
However, combining the newly created ascending support line with the resistance line of the channel gives us a symmetrical triangle.
Furthermore, the price is rapidly approaching the point of convergence between resistance and support, at which time a decisive move should occur.
The end of the triangle is projected to occur on August 1, at the latest.
This divergence is evident in the period from May 13 to Jul 1. Since then, however, both indicators have mimicked price movement.
The breakout attempt transpired with very significant volume.
The amount of volume shows that there was significant buyer strength present at the time.
At the time of writing, the DOGE price was trading below the 10-, 20- and 100-day moving averages, facing very close resistance from the first two.
The lack of divergence and significant resistance left for the price to clear makes us believe that DOGE will not break out in the near future.
However, the extreme volume of the breakout attempt makes it likely that it will do so eventually.
When will that occur?
A look at the weekly chart gives us one support area.
It is found near 25 satoshis and created by the highs of October 2017.
The creation of lower wicks indicates that there is buying pressure around this area.
However, this is only a minor support area.
Due to the lack of a clear reversal sign, we believe it is more likely that DOGE will reach lows close to 15 satoshis and create a double bottom before possibly initiating a reversal.
The DOGE price has been trading inside a descending channel.
According to our analysis, it is likely to continue trading within the confines of this channel until it reaches the support area outlined above.
Do you think the DOGE price will reach the support area? Let us know 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.
Images are courtesy of Shutterstock, TradingView.