On Wednesday, @greg16676935420, a popular financial twitter personality and Dogecoin (CRYPTO: DOGE) enthusiast, wore his Shiba Inu covered socks as a good luck charm to keep the crypto over the 30-cent mark. It must have worked because although Dogecoin retraced to the 27-cent mark intraday the crypto rallied a hair over Greg’s wish at $0.303.
Greg and the millions of other Dogecoin traders may not have to worry too much about the crypto losing value in the immediate future if the bull flag plays out.
See Also: Why Is Dogecoin Shooting Up Today?
The Dogecoin Chart: After Dogecoin broke up from a daily bull flag created between Aug. 7 and Aug. 11, the crypto continued north and regained support at the 31-cent level just as Benzinga called out Aug. 13. The crypto has since created another bull flag pattern with the pole made between Aug. 11 and Aug. 16 and the flag between Aug. 16 and Aug. 19.
When Dogecoin traded down into the flag of the pattern, its relative strength index (RSI) was able to cool off, which was desperately needed because on Aug. 15 the crypto’s RSI was measuring at 80%. When a stock or crypto’s RSI rises over 70%, it’s a sell signal for technical traders.
On Friday Dogecoin looked as though it may begin another upwards push, but continued to consolidate on lower timeframes due to lack of volume. As of midafternoon, Dogecoin’s volume stood at just 4.57 million compared to the average 10-day trading volume 16.28 million. Bulls will want to watch for big bullish volume to come in this weekend like it did on Aug. 7 when Dogecoin shot up almost 30%.
Dogecoin is trading above both the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day EMA, both of which are bullish indicators. Dogecoin is also trading about 48% above the 200-day simple moving average, which indicates overall sentiment in the crypto is bullish.
- Bulls want to see Dogecoin continue to hold above the 31-cent mark and for big bullish volume to come in and drive Dogecoin up over the 35-cent mark, which will confirm the bull flag was recognized and allow the crypto to make a higher high. Above 35 cents, Dogecoin has another resistance level at the 40-cent level.
- Bears want to see selling pressure come in to drop the crypto down below support at 31 cents. If Dogecoin loses the level as support, there’s further support at both the eight-day EMA and the top of the flag. Dogecoin has price history support below at 27 and 23 cents.
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