Is Dogecoin Coiling Up And Preparing For A Move?Looking at the technical picture of EASYMARKETS:DOGUSD on our daily chart, we can see that the crypto continues to slide, after peaking in the beginning of December. It is now trading below a short-term downside resistance line taken from the high of December 11th. That said, the rate is currently finding support just slightly above the 200-day EMA and above a short-term upside line drawn from the low of October 19th. This means that the EASYMARKETS:DOGUSD might be coiling up and getting into a squeeze. We would prefer to wait for a breakout through one of those given trendlines first, before examining the next directional move.
In order to consider a decline in the near term, a break below the aforementioned upside line, a drop below the 200-day EMA and at the same time a fall somewhere below the 0.077 hurdle would be needed. This way the bulls could get spooked from the arena for a bit, allowing more bears to join in. EASYMARKETS:DOGUSD may then travel to the current lowest point of January, at 0.073. If the selling doesn’t stop there, we might then aim for the 0.070 territory, or even the 0.065 zone, marked near the lowest point of November 2023.
Alternatively, a break of the previously discussed downside line could attract more buying interest, possibly sending EASYMARKETS:DOGUSD to the high of last week, at 0.088. If the bears are still asleep, this might allow the buyers to continue applying pressure, possibly sending the rate to the 0.095 hurdle, or the 0.099 level, marked by the high of December 15th.
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