Dogecoin (CRYPTO: DOGE) is trading higher Wednesday in a relatively bullish cryptocurrency market where only seven out of 92 cryptocurrencies on Coinbase Global Inc’s (NASDAQ:COIN) app are trading down today.
Dogecoin is pushing higher than many other popular cryptocurrencies such as Bitcoin (CRYPTO: BTC), Bitcoin Cash (CRYPTO: BCH) and Litecoin (CRYPTO: LTC)
Dogecoin was up 11.16% at $0.2233 at time of publication.
Dogecoin Daily Chart Analysis
- Dogecoin has been falling toward support in recent weeks and saw a large jump before it could reach the area. It trades in what technical traders call a sideways channel.
- The crypto trades below both the 50-day moving average (green) and 200-day moving average (blue), indicating recent sentiment in the crypto has been bearish.
- Each of these moving averages may act as resistance in the future.
- The $0.45 level acted as resistance in the past and may again if the crypto can reach this area once again. Dogecoin has been holding above the $0.15 area, a place where it has been able to find support multiple times in the past.
- The Relative Strength Index (RSI) saw a bounce after reaching the border of the oversold area. The RSI has moved higher since and now sits at 40. This means there is still more selling pressure than buying pressure although more buyers have been moving into the crypto.
What’s Next For Dogecoin?
Bullish traders are looking to see Dogecoin bounce and start to form higher lows. Higher lows are a good sign that a bullish trend may be starting. Bulls would then like to see the stock break above the $0.45 level and hold this area as support before it may continue to push higher.
Bearish traders are looking to see Dogecoin fade lower and eventually fall below the $0.15 level. Bears would then like to see the crypto begin to hold the $0.15 level as resistance. This could cause the crypto to be ready for further bearish moves.
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