Dogecoin Prepares To Work After Rolling With Bitcoin, Ethereum

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Dogecoin (CRYPTO: DOGE) was toppled along with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) on September 7, just before El Salvador adopted Bitcoin as legal tender.

On September 2, the Shibu-Inu-themed alt-coin coin broke from a downtrend line that had held it up from its high of 35 cents on August 16 and climbed nearly 10% higher. Technically speaking, the trend break should have lifted the crypto higher, but Bitcoin’s sharp drop caused Dogecoin to pluck 30%.

On Sunday, Dogecoin was behaving bullish, trading higher online with Bitcoin and Ethereum, albeit on below average volume. When a large, impulsive move up or down takes place in a stock or crypto, it is usually followed by a period of consolidation of several days to allow new patterns to develop.

See also: The Rise of Dogecoin to $ 1 by Year’s End: A Possibility or a Utopia?

The Dogecoin Chart: Since the day closed on September 7 at the 25 cent mark, Dogecoin has spent the last 5 days consolidating the move. In its consolidation, Dogecoin settled below another downtrend line – trading lower in a tightening range while holding above a key 23 cent support level.

History repeats itself often on stock and crypto charts and because Dogecoin broke from a downtrend line the last time it created the pattern, it is likely that Dogecoin could make the same upward movement at from the most recent model. If Dogecoin breaks the descending trendline, traders and investors will want to see a large volume enter the breakout to confirm that the trend has been recognized.

Dogecoin trades below the eight-day and 21-day Exponential Moving Averages (EMA) with the eight-day EMA trending below the 21-day, both of which are bearish indicators. On Sunday, Dogecoin regained the 200-day simple moving average (SMA), indicating that general sentiment is now bullish.

The bulls want to see Dogecoin hold above 23 cents and a big bullish volume to enter and push the crypto through the downtrend line. If the crypto can break bullish from the pattern, it has room to run and regain support from the eight-day and 21-day EMAs, which could then propel Dogecoin above resistance at the 27 level. cents. The bears want to see a big bearish volume come in and break Dogecoin below the important 23 cent area which would cause it to lose support at the 200 day SMA. Below the 23 cent mark, Dogecoin has support at $ 0.20 and $ 0.16.

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