Dogecoin – Daily Tech Analysis – May 10th, 2021It’s a bearish start to the day for Dogecoin. Failure to move back through the day’s pivot would leave support levels in play.
Dogecoin slid by 10.34% on Sunday. Following on from a 7.76% decline on Saturday, Dogecoin ended the week up by 52.65% to $0.5713.
A bullish start to the day saw Dogecoin rise to an early morning intraday high $0.7027 before hitting reverse.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Falling short of the first major resistance level at $0.7206, Dogecoin tumbled to a mid-day intraday low $0.4210.
Dogecoin fell through the first major support level at $0.5759 and the second major support level at $0.5146.
More significantly, Dogecoin also fell through the 23.6% FIB of $0.5691 and the 38.2% FIB of $0.4618.
Finding afternoon support, however, Dogecoin broke back through the support levels and the 38.2% FIB and the 23.6% FIB to revisit $0.59 levels.
A bearish end to the day saw Dogecoin fall back through the first major support level to end the day at sub-$0.5720 levels.
At the time of writing, Dogecoin was down by 2.85% to $0.5550. A mixed start to the day saw Dogecoin rise to an early morning high $0.5728 before falling to a low $0.5483.
While leaving the major support and resistance levels untested early on, Dogecoin fell back through the 23.6% FIB of $0.5691.
For the day ahead
Dogecoin would need to move back through the 23.6% FIB and the $0.5650 pivot to bring the first major resistance level at $0.7090 into play.
Support from the broader market would be needed, however, for Dogecoin to break out from $0.65 levels.
Barring an extended crypto rally, the first major resistance level and Sunday’s high $0.7027 would likely cap any upside.
In the event of another breakout, Dogecoin could test resistance at $0.80. The second major resistance level sits at $0.8467.
Failure to move back through the 23.6% FIB and the $0.5650 pivot would bring the 38.2% FIB of $0.4618 and the first major support level at $0.4273 into play.
Barring another extended sell-off, however, Dogecoin should steer clear of sub-$0.40 levels. The second major support level sits at $0.2833.
Looking at the Technical Indicators
First Major Support Level: $0.4273
Pivot Level: $0.5650
First Major Resistance Level: $0.7090
23.6% FIB Retracement Level: $0.5691
38.2% FIB Retracement Level: $0.4618
62% FIB Retracement Level: $0.2882
Please let us know what you think in the comments below.