Dogecoin (DOGE) is one of the most popular cryptocurrencies in the market, thanks to its loyal fan base and celebrity endorsements. The coin started the year with a massive rally that pushed its price to an all-time high of $0.0875 on February 7th, 2021. Since then, however, DOGE has been trading in a sideways range between $0.05 and $0.08, with occasional spikes and dips.
In this post, we will analyze the current price action of DOGE and look at some potential scenarios for April. We will use technical indicators, such as trend lines, support and resistance levels, moving averages, and Fibonacci retracement levels, to identify key levels and patterns.
DOGE Price Analysis: Daily Chart
The daily chart of DOGE/USD shows that the coin is still in a consolidation phase after the February rally. The price is moving within a descending triangle pattern, which is typically a bearish continuation pattern that indicates a possible breakdown below the lower trend line.
However, DOGE has also been finding strong support at the $0.05 level, which coincides with the 50% Fibonacci retracement level of the entire rally from $0.0045 to $0.0875. This level has acted as a floor for DOGE several times in March, preventing further losses.
Moreover, the 50-day moving average (MA) is also providing dynamic support for DOGE, as it has been rising steadily since January. The 50-day MA is currently at $0.0578 and could act as a springboard for DOGE if it bounces off it.
On the upside, DOGE faces resistance at the $0.08 level, which is the upper trend line of the triangle and also the 23.6% Fibonacci retracement level. This level has rejected DOGE several times in March, capping its gains.
Additionally, the 20-day MA is also acting as a dynamic resistance for DOGE, as it has been declining since February. The 20-day MA is currently at $0.0683 and could push DOGE lower if it fails to break above it.
Therefore, DOGE is trading in a tight range between $0.05 and $0.08, with no clear direction yet. The coin needs to break out of this range to confirm its next move.
DOGE Price Analysis: 4-Hour Chart
The 4-hour chart of DOGE/USD shows more details of the triangle pattern and the recent price action. The chart also shows that DOGE has formed a bullish divergence with the relative strength index (RSI), which is a sign of weakening bearish momentum and a possible reversal.
The RSI is a momentum indicator that measures the speed and change of price movements. It ranges from 0 to 100, with values above 70 indicating overbought conditions and values below 30 indicating oversold conditions.
A bullish divergence occurs when the price makes lower lows while the RSI makes higher lows, indicating that the sellers are losing strength and the buyers are gaining ground.
As seen on the chart, DOGE made a lower low at $0.0502 on March 25th, while the RSI made a higher low at 36. This suggests that DOGE could be ready for a bounce back to the upper trend line of the triangle or even higher.
However, DOGE still needs to overcome some resistance levels before confirming a bullish breakout. The first resistance is at $0.0645, which is the 38.2% Fibonacci retracement level of the last swing high at $0.0808 and swing low at $0.0502.
The second resistance is at $0.0683, which is the 20-day MA on the daily chart and also the 50% Fibonacci retracement level of the same swing high and low.
The third resistance is at $0.0721, which is the 61.8% Fibonacci retracement level and also a previous support-turned-resistance level.
The fourth and final resistance is at $0.08, which is the upper trend line of