Dogecoin’s price created lows of twenty-five (25) satoshis in last week of June after which a rise rallied to highs of thirty-nine (39) satoshis from where it declined back to twenty-five (25) satoshis creating a double bottom.
Currently, the price is trading at twenty-six (26) satoshis with a bullish outlook.
Across the weekly frames chart, it can be observed that the crypto has reached a support area which is reinforced by the long lower wick.
If the price continues downward next support can be found at fifteen (15) satoshis.
Across the daily frames, we can see that the price of the pair has been trading inside a descending channel since May this year. Although the price is currently trading close to the resistance the pair has had a false breakout and two other failed attempts at breaking above it.
The two important things to note is the unsuccessful breakout on July 30 and the recent double bottom (June 25 and August 8).
Dogecoin price started falling since the breakout but instead reaching the support of the channel it established another support on which it double bottomed before increasing again.
This is a significant event as the double bottom occurred inside a strong support region and was accompanied by a bullish divergence in the Relative Strength Index (RSI).
These factors indicate that the price is much more likely to rise than fall below. Current resistance lies at thirty-four (34) satoshis.
Dogecoin price analysis summary
DOGE/BTC pair failed to break through resistance and fell below to create a double bottom in the center of the channel. It is expected that the price will rise to the resistance area once again.