In the cryptocurrency market, technical analysis is a vital indicator, especially for investors in the futures market. At the time of writing, Dogecoin is trading at $0.08103, and a detailed chart analysis is provided to identify the main support and resistance levels for Dogecoin.
The first significant pattern observed in Dogecoin’s daily chart is a descending channel formation. After touching the resistance line on November 17, DOGE encountered a significant barrier and gained upward momentum following selling pressure. The decrease in volatility in the recent bars could slow down DOGE’s short-term momentum.
The most critical support levels to watch on DOGE’s daily chart are $0.07673, $0.07083, and $0.06580, respectively. A daily bar closing below the $0.06580 level could indicate that DOGE is trading under the EMA 200 (red line) and point to a long-term loss of momentum.
The main resistance levels on DOGE’s daily chart are $0.08399, $0.08761, and $0.09511, respectively. A daily bar closing above the $0.08761 level could break the formation resistance and potentially lead to DOGE reaching its recent highest price.
The first notable pattern in the four-hour Dogecoin chart is an inverse triangle formation. Although usually seen as a negative scenario in traditional markets, a breakout of resistance could invalidate this view. Finding support at the EMA 200 level during a breakdown of the support line could be a significant factor for an upward trend.
The most important support levels to follow for DOGE in the four-hour chart are $0.07952, $0.07673, and $0.07493, respectively. A bar closing below the $0.07673 level, which intersects with the support line, could lead to a long-term decline in DOGE’s momentum.