The meme cryptocurrencies, like Dogecoin and Shiba Inu, looked quite doomed until the end of last week, after the big crash which wrote off around 80% of the value in these cryptos, while the buying pressure was really weak from the crash until the end of last week. They were also missing out on the crypto reversal, which started on July 20.
Moving averages were providing resistance for DOGE/USD, with the 200 SMA (purple) doing so on the H4 chart during May and June. Then, the smaller MAs, such as the 100 SMA (green) and later the 20 SMA (gray) were providing resistance, pushing the price down on this time-frame chart, showing increasing selling pressure on DOGE/USD, as we highlighted in our 2021 Dogecoin forecast.
Doge Coin Analysis – DOGE/USD H4 Chart
The 20 SMA acting as support for Dogecoin now
However, towards the end of July, Dogecoin was putting up a fight and slowly rising above the moving averages, as the crypto market was turning bullish again. This was the first bullish signal, although Dogecoin was largely missing out on the bullish reversal of the crypto market, which so far has brought back lots of gains for the main cryptocurrencies.
But, the bullish momentum of the crypto market eventually caught up with these strange digital tokens and Dogecoin made a jump toward the end of last week. DOGE/USD pushed above the moving averages on the H4 chart, and it climbed from below $0.20 to $0.28 at first and then to $0.29, gaining nearly 50% of its value. So, the highs are getting higher after this reversal, and now the lows are getting higher as well, indicating that the buyers are in charge.
Dogecoin pulled back yesterday, but the 20 SMA is holding as support and the price is already starting to bounce off that moving average. So, this looks like a good opportunity to get into this trade on the long side. Although, I would have liked to see a deeper pullback to $0.20-0.22 which would be a great place to go long on this crypto. We are following the price action and if we open a trade here you can find it on our forex signals page.