Dogecoin (CRYPTO: DOGE) rose about 5% on Friday after breaking out of a bearish descending triangle and falling through an ascending trendline, Benzinga pointed out on Nov. 15.
Many alt coins in the cryptocurrency market enjoyed a boom after falling into sympathy with the leaders Bitcoin (CRYPTO: BTC) and ether (CRYPTO: ETH), which are down 15% and 14% respectively this week.
Dogecoin took the hit harder, falling over 17% over the week to a daily low of $ 0.216 on Thursday. The recent slump has dealt a blow to Dogecoin enthusiasts who were hoping the crypto would hit $ 1 by the end of the year.
Whether Friday’s bullish price action is just an upswing or the beginning of an upside reversal remains to be confirmed, but a promising pattern has emerged on the Dogecoin chart.
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The Dogecoin Chart: After Dogecoin hit another lower low of $ 0.223 on November 16, Dogecoin rebounded just above the 24 cent mark on Thursday, printing another lower low in a row, confirming the downtrend is still intact. The crypto then fell to Thursday’s low of $ 0.216 for the day, closing the 24-hour session slightly above the level.
On Friday, to retest the level, Dogecoin fell and ricocheted. Coupled with the price action on Thursday, the crypto has now printed a bullish double floor pattern. If the double bottom pattern is detected, traders can watch for high volumes on Saturday to move the price of Dogecoin up to confirm the pattern.
Dogecoin is also trading in a bearish inner bar pattern, with Friday’s price range being completely within Thursday’s range. The inner bar pattern gives both bulls and bears clear values to watch because if the cryptocurrency breaks from Thursday’s mother bar on Saturday then higher prices are likely to come, while if Dogecoin breaks down from the mother bar, prices are likely to be lower Prices in sight.
Dogecoin could hold onto a second lower rising trendline from the July 20th low of 16 cents. If the crypto continues to close the trading sessions above the level, the ascending trendline can lead the Dogecoin further up.
Dogecoin trades below the exponential moving averages (EMAs) of 8 and 21 days, with the 8-day EMA trading below the 21-day trend, both bearish indicators. The crypto is also trading below the 50-day simple moving average, suggesting that the longer-term sentiment is bearish.
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- Bulls want to see big bullish volume and push Dogecoin above $ 0.241, which is the first sign of a turnaround on the horizon. The crypto has resistance at $ 0.248 and $ 0.263.
- Bears want to see a large bearish volume and break off Dogecoin from the mother bar. The crypto is supported below at $ 0.196 and the 16 cent mark.