Dogecoin Price Action: Is DOGE Set to Break Below Key Support?

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Dogecoin (DOGE) Daily Chart

Doge has now been trading in an important range for its price for over two weeks.

The range spans from support at $0.002 to resistance at $0.0023.

The last time price entered this range in late November; it traded within the range for three weeks before moving out.

Price has tested the lower end of the range several times this week but has failed to close below.

Similar price action took place the last time doge traded in this range with price testing both the upper and lower bounds of the range before breaking out with a large movement.

When price trades in a range for an extended period of time, it often breaks out with a large movement.

Similar price action is likely to take place this time and price will likely only break from the range with a significant move.

Dogecoin (DOGE) 6-hour

Price action has been forming more bearish this time with no tests of the upper bound of the range taking place.

The 6-hour chart shows price moving below the $0.002 support a number of times but the price quickly moving back within the range each time.

This shows traders are not yet willing to accept prices below $0.002 further supporting the argument that it will take a significant move to bring price outside of the range.

Key Takeaways:

  • Price has been trading in a range from $0.002 and $0.0023 for over two weeks. This is an important area for price and Doge also traded in this range for three weeks when it entered the area in late November.
  • Price has tested the lower end of the range numerous times, but traders quickly brought the price back above $0.002 support each time it dropped below.
  • It will likely take a significant move to bring price outside of the range as it tends to be the case when price stays for a prolonged period inside a specific range.

Dogecoin Price Action: Is DOGE Set to Break Below Key Support? was originally found on copy trading cryptocurrency | Blockchain News | Bitcoin News | blokt.com.