Dogecoin (CRYPTO: DOGE) got tangled up in a tight area.
Bitcoin (CRYPTO: BTC) and ether (CRYPTO: ETH), the leaders of the crypto package, found themselves in long periods of consolidation after falling sharply from their all-time highs in April of $ 64,899 and $ 4,384, respectively. Dogecoin is also down 68% from its all-time high of $ 0.739 on May 8, and appears to have hovered around $ 0.236.
See also: What is Dogecoin and how to buy it
The Dogecoin Chart: Dogecoin’s volatility has decreased significantly over the past seven days, and on Friday the crypto fluctuated within a one-cent range between $ 0.238 and $ 0.248. The decreased volatility is linked to an extremely low volume on the Dogecoin chart, which suggests that little is being bought or sold in the crypto.
Dogecoin approaches the apex of a descending triangle and is pushed down by the triangle’s top sloping trendline and supported by the pattern’s horizontal support line. If Dogecoin hits the apex on Saturday and the pattern is recognized, a surge in volume can be expected to break it out of the triangle in a bullish or bearish manner.
Dogecoin trades below both the eight-day and 21-day exponential moving average (EMA), and on Friday the eight-day EMA acted as an immediate resistance.
Dogecoin is also trading below the 21-day EMA, with the 8-day EMA trending below the 21-day EMA, both bearish indicators. The crypto is also trading below the 200-day simple moving average, suggesting that the general sentiment on Dogecoin is bearish.
Bulls want to see big bullish volume and lead Dogecoin above the descending trendline and towards its next resistance level at $ 0.279. This would also allow Dogecoin to reclaim the 8-day and 21-day EMAs as support.
Bears want to see the upper trendline push Dogecoin further down until it loses the support at $ 0.236. If the crypto falls below that level, it could hit $ 0.163 again before bouncing like it did on June 21 and 22.
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