Dogecoin Barks Resistance As Bitcoin Breaks Bull

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Late Thursday night, Dallas Maverick owner and “Shark Tank” host Mark Cuban said on Twitter that fans of the basketball team would get a special price on the merchandise at a sale at come if they paid with Dogecoin (CRYPTO: DOGE). He has been a strong supporter of cryptocurrency with Elon Musk, CEO of Tesla Inc (NASDAQ: TSLA).

Cuban’s tweet was well received by supporters of the Dogecoin community, including crypto co-creator Billy Marcus, who responded to thank Cuban for his support. When companies choose to accept crypto as a form of payment for goods or services, this adds utility which, in turn, makes it more valid.

On August 10, Benzinga announced a bullish flag pattern on the Dogecoin chart and on August 11, the crypto broke bullish from the pattern. On Friday, Bitcoin (CRYPTO: BTC) appeared to break with a bullish flag pattern created between August 4 and 12, which could, in turn, give Dogecoin a boost.

See Also: Dogecoin Still Heading To $ 1, Ethereum To $ 14,000: Crypto Entrepreneur David Gokhshtein

The Dogecoin Chart: After breaking bullish from the pattern, Dogecoin has consolidated in a sideways pattern stuck below resistance near the 28 cent mark. Dogecoin has tried to break air resistance every day for the past three days, but has encountered sellers who have dropped the crypto under support.

Sideways consolidation helped Dogecoin cool its Relative Strength Index (RSI), which hit over 70% on August 7. On Friday afternoon, however, the crypto was once again approaching the 70% mark. When the RSI of a stock or crypto measures over 70%, it is considered to be in overbought territory, which can be a sell signal for technical traders.

Dogecoin was printing a bullish Marubozu candlestick on Friday, indicating that higher prices could occur over the weekend if the crypto could close the day near the 28 cent level. Dogecoin’s Marubozu candle is also in Thursday’s trading range, creating a bullish inside bar setup.

Dogecoin trades above the eight-day and 21-day Exponential Moving Averages (EMA) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. Dogecoin is also trading over 30% above the 200-day simple moving average, indicating that the general sentiment towards the crypto is bullish.

Bulls want to see big bullish volume entering Dogecoin to push it up and close to the 28 cent mark. If Dogecoin can regain the support level, there is room to move up to 31 cents. The bears want to see Dogecoin continue to reject overhead resistance and a big bearish volume to enter and deposit the crypto below the eight-day EMA support. If Dogecoin loses the support level, it could revert support to 23 cents. Below that is another level of support at the 20 cent level.

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