Technical analysis is an important indicator in the cryptocurrency market, especially for investors trading in the futures market. At the time of writing, Dogecoin is trading at $0.08349. So, what clues does technical analysis offer for Dogecoin? Let’s explore this by examining detailed charts and important support and resistance levels.
The first notable pattern in the daily DOGE chart is the descending channel formation. In this structure, after the last upward movements touch the resistance line, selling pressure continues with significant corrections in the recent bar movements.
The most important support levels to be followed in the daily DOGE chart are as follows: $0.08167, $0.07673, and $0.07083. A daily bar closing below these support levels, especially below the EMA 200 (red line), will cause significant selling pressure for DOGE price.
The most important resistance levels to be monitored in the daily DOGE chart are: $0.08400, $0.08656, and $0.09055. Especially, a daily bar closing above the significant barrier at $0.08656 will initiate an acceleration for DOGE price after the formation is broken.
In the daily DOGE/ETH chart, the first noticeable formation is the channel pattern. While breaks below the support level of this channel remain as wicks only, their bar closings continue to provide clues about the levels to be monitored. Particularly, the DOGE/ETH pair continues to gain value with the opening of the EMA 200 level.