Dogecoin (CRYPTO: DOGE) is trading lower Friday alongside the rest of the cryptocurrency market that’s cooling off after seeing a hot few days. DOGE is trading with a set of higher lows and possibly ready for a green end of the year if it can hold the trendline.
Dogecoin was down 1.67% at $0.238 at last check.
Dogecoin Daily Chart Analysis
- Dogecoin looks to be forming higher lows and heading closer to resistance inside of a sideways channel.
- The higher low trendline has been able to hold as support throughout the past few months. The $0.45 level has been an area where Dogecoin has previously found resistance and been unable to cross above. The $0.15 level is another area where Dogecoin has been able to bounce and hold as support previously.
- The crypto is trading above the 50-day moving average (green), but below the 200-day moving average (blue) indicating the crypto is trading in a period of consolidation.
- The 50-day moving average is somewhere the crypto may find support, while the 200-day moving average may act as resistance.
- The Relative Strength Index (RSI) has cooled off with the crypto and now sits at 50. This indicates the buying and selling pressures are almost equivalent Friday.
What’s Next For Dogecoin?
Bullish traders are hoping to see the trendline continue to hold throughout the next few months. If Dogecoin can hold above the trendline and continue to form higher lows, it may end up near the resistance level or higher by the end of 2021.
Bearish traders are looking to see a fall below the higher low trendline which could indicate the start of a downtrend. Bears are then looking for a break below the $0.15 level and for this level to become resistance for possible further moves in the future.
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