Dogecoin Price Technical Analysis for 2/3/2015 – Testing Support

Dogecoin price dropped further yesterday to record a low of 52 satoshis on Hitbtc today as we expected during yesterday’s analysis. In my opinion, the 52 satoshis level will support the price and prevent dogecoin price from declining to lower levels.

By studying the 4 hour Hitbtc (DOGE/BTC) chart from tradingview.com and plotting the William’s Alligator indicator (look at the below chart), we can notice the following:

• The price now is continuing to record lower lows and we can spot a downwards sloping support level as shown by the orange trend line on the below chart.
• Dogecoin price is now lower than the 21, 13 and 8 period SMAs of William’s alligator and the alignment of these SMAs doesn’t show any bullish signs.
• The price will likely stop dropping when it touches the new downwards sloping support level at around 52 satoshis, so we are not likely to see dogecoin price drop below this level.

By studying the 1 day Hitbtc (DOGE/BTC) chart from tradingview.com and plotting Fibonacci retracement across a trend line that extends between the high recorded on the 26^th of September 2014 (117 satoshis) and the low recorded on the 10^th of August (12 satoshis), we can notice the following:

• Dogecoin price is now supported by the 52 satoshis level at 62% Fibonacci retracement level and is facing resistance at 64 and 77 satoshis which coincide with the 50% and 38% Fibonacci retracement levels respectively.
• The price is now well below the 20, 50 and 100 day EMAs which points to the bearish trend that has been controlling the market during the past few days.
• The MACD is in the negative territory and the blue MACD line is below the red signal line so there is no sign of a bullish trend upcoming in the next 24 hours.

Conclusion:

Dogecoin price dropped down to 52 satoshis today. Our technical analysis predicts that the current downtrend will stop as the 52 satoshi level seems to support the price well.

Charts from hitbtc