Dogecoin on Monday recorded more than 18 percent gains against the US Dollar.
The DOGE/USD kickstarted the day adding value to its prevailing upside momentum. During the early Asian trading session, the pair had made higher highs towards 0.00572-fiat. It only began to stumble as the session matured and fell towards 0.00498-fiat at the beginning of the European session. Thenceforth, DOGE/USD is consolidating sideways within a narrow trading range.
The Dogethereum announcement impact continues to stay, but there are concerns in the markets as selling sentiment near the intraday highs remain. DOGE/USD has already broken below the ascending trendline formation (depicted in orange) and could continue to head downwards as other top coins gain momentum, including Bitcoin that looks stable and impressive for the past few days.
After breaking below the ascending trendline, DOGE/USD is now just above its 100H MA. The indicator could be treated as a potential bounce-back level by the day traders, which could push the pair back above the prevailing ascending trendline. We can note similar bouncebacks in the RSI and Stochastic indicators during the September 1 and 2 trading sessions. The RSI particularly is hanging near 40, a level that has proven to be a support to many downtrends before.
However, in the event of an extended bearish correction from the 0.00691-peak, we could see DOGE/USD target 0.00445-fiat as its next potential support level. The same line has reversed the bearish correction once on September 2.
As of now, the sentiment in the Dogecoin market remains to be biased towards bulls in near-term.
The range we are in right now is defined by 0.00558-fiat as interim resistance and 0.00503-fiat as interim support. It is a narrow enough range for applying our intrarange strategy. That is, putting a long towards resistance on a bounce back from support and short towards the support on a pullback from resistance. We would, therefore, be relying on breakout positions for the rest of the day.
To begin with, a break above 0.00558-fiat could have us put a long entry towards 0.006-fiat, our primary upside target that has reversed uptrends on many occasions recently. If we manage to invalidate the primary upside itself, then our next position would be towards 0.00644-fiat. On both the longs, we will put ours stop losses four-pips below the entry positions (1 pips ~ 0.00010).
In case of a breakout to the downside, we would prefer to wait for the price to break below its 100H indicator. If it does, then entering a short towards 0.00451-fiat looks like the best choice. On a pullback from 100H, however, we will enter a long towards interim resistance.
Featured image from Shutterstock. Charts from TradingView.