Dogecoin (CRYPTO: DOGE) showed up late for the crypto party, just like Benzinga called on Friday but had a howling good time when she got there. On Monday, the Shina Inu-themed alt coin ran over 15% north before bumping into resistance levels near the 27 cent mark, where it rejected the level and turned vicious.
The cryptocurrency market has been on fire with lately Bitcoin (CRYPTO: BTC) has gained nearly 50% of its value since September 30th and ether (CRYPTO: ETH) traded over 30% higher in the same period. The momentum in the crypto market was further boosted by an announcement that the first Bitcoin futures ETF would start trading on Tuesday.
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The Dogecoin Chart: After hitting the overhead resistance level, Dogecoin declined about 6% and began to consolidate sideways in lower time frames. Consolidation has pushed Dogecoin into a tightening area on the four-hour chart, with the last four hours of trading being within the previous four-hour area, creating a bullish pattern within the bar.
On the 24-hour chart, Dogecoin is trading in a confirmed uptrend that began on October 12th when the crypto hit a low of 21 cents. Dogecoin has since created a series of higher highs and higher lows, with the final low at $ 0.225. Dogecoin needs to stay above the level in order for the uptrend to remain intact.
The above-average volume on Monday indicates a high level of interest from traders and investors in Dogecoin. By late afternoon, the crypto was over 600 million in volume compared to the 10-day average of 280 million.
Dogecoin trades above the eight-day and 21-day exponential moving averages (EMA), with the eight-day EMA trading above the 21-day trend, both bullish indicators. Monday’s upward move also allowed Dogecoin to regain the simple 50-day moving average as support, suggesting that the longer-term sentiment in crypto has turned bullish.