Dogecoin Flies Higher, Leader Bitcoin, Ethereum: Here’s What to Watch – Dogecoin (DOGE/USD)

[ad_1]

Dogecoin DOGE exploded nearly 7% during Monday’s 24-hour trading session, in tandem with the S&P 500, which rose more than 1%.

The Shiba Inu-themed crypto was showing strength against Bitcoin BTC/USD and Ethereum ETH/USD, which were trading more moderately up 1% and 3.7%, respectively.

All three coins have shown strength against the general market since late December, trading in steady uptrends, albeit with a lower level of volatility than generally expected. In contrast, the S&P 500 has mostly chopped sideways during this period, except for Friday when the index broke away from the horizontal pattern.

The higher Dogecoins spike allowed the crypto to regain support at the 200-day simple moving average (SMA), while Ethereum worked higher towards this area.

The 200 day SMA is an important indicator. Technical traders and investors consider trading stocks or crypto above the daily chart level to be in a bullish cycle, while trading crypto below the 200-day SMA is considered to be in a bullish cycle. down cycle.

The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs, while when the 50-day SMA crosses above the 200-day, a bullish golden cross occurs.

Want direct analysis? Meet me in the BZ Pro lounge! Click here for a free trial.

The Bitcoin Chart: Bitcoin reversed in an uptrend on December 30. Since then, the crypto posted a high of $16,988 on January 4 and a low the next day of $16,670.82. During the 24-hour trading sessions on Sunday and Monday, Bitcoin climbed above the most recent high, but has yet to send a signal that the temporary top is within.

Eventually, Bitcoin will print a bearish reversal candlestick, such as a doji or shooting star candlestick, which could indicate that the next high has been reached, and a retracement will occur. When this happens, bullish traders will want to see the crypto bounce off the eight-day exponential moving average.

Bitcoin has resistance above $17,580 and $19,915 and support below at $16,797.28 and $16,000.

Ethereum Chart: Ethereum reversed in its most recent uptrend on December 19th. The cryptos most recent high was formed on January 4 at $1,272.01 and the most recent low was printed the next day at $1,234.20.

During Monday’s 24-hour trading session, Ethereum was charging higher but, like Bitcoin, the crypto showed no signs that the next high has occurred. If Ethereum continues to push higher over the next few days, the crypto is likely to find resistance at the 200-day SMA.

Ethereum has resistance above $1,421.80 and $1,500 and support below at $1,308.89 and $1,231.28.

The Dogecoin Chart: Dogecoin started trading in an uptrend on December 30 and printed its latest high on January 5 at $0.075 and the most recent low was formed at $0.069 the following day. On Monday, Dogecoin was charging towards the 50-day SMA, which could serve as resistance if the crypto continues to climb.

If Dogecoin closes the trading day near its high price for the day, the crypto will print a bullish Marubozu candlestick, which could indicate that higher prices will return on Tuesday. The second most likely scenario is for Dogecoin to form an inside bar pattern to consolidate Monday’s big move north.

Dogecoin has resistance above $0.083 and $0.091 and support below $0.075 and 7 cents.

Read more: Digital Currency Group under scrutiny for internal transfers, SEC investigates

[ad_2]