You Ask, We Analyze: Why Baby Dogecoin Looks Set For A Reversal If It Can Hold This Key Level


Benzinga asked its Twitter Inc (NYSE:TWTR) followers on Sunday evening what stock they’re buying at the open on Monday. From the replies, Benzinga selected one ticker for technical analysis.

@Shafiusani20 and @Surajit29151069 are buying Baby Doge Coin (CRYPTO: BABYDOGE).

Baby Doge enthusiasts have largely managed to stay out of the dog fights between the Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) packs. Maybe that’s because Baby Doge has been too busy focusing its efforts on saving animal lives: the crypto announced on Dec. 15 it had partnered with North Shore Animal League America, the world’s largest no-kill animal rescue and adoption organization.

To launch the partnership, Baby Doge donated an initial $150,000, but the collaboration will eventually evolve to include more such as a roll-out of a Baby Doge wrapped mobile rescue unit, interstate animal transports and exclusive merchandise to raise awareness, encourage engagement and save animals’ lives.

As most of the cryptocurrency market, Baby Doge has been in a slump recently and is currently trading down significantly from its Oct. 30 all-time high of $0.000000005220. There are signs the crypto may have hit its bottom, as long as it can hold above a key support level at $0.000000001300.

See Also: Bitcoin, Ethereum, Dogecoin Head Lower Heading Into Christmas Week: Analyst Says Traders Gravitating Toward These Coins Instead

The Baby Doge Chart: Baby Doge may have found a bottom at the key level when it tested the area as support on Dec. 14, 15 and 16. The three consecutive tests of the key area as support created a bullish triple bottom pattern on the daily chart and since then, Baby Doge has begun to curl up slightly from the level.

The curl may eventually create a rounded bottom pattern, which can indicate the bottom is in and the crypto will begin to slowly climb higher. Bullish traders will want to watch for the crypto to regain the eight-day exponential moving average (EMA), which would help to guide Baby Doge higher.

Since Dec. 10, Baby Doge has been consolidating sideways between the $0.000000001300 level and an upper resistance level at $0.000000001623 on mostly lower-than-average volume. Eventually, either a big bullish volume or a big bearish volume will come in to break the crypto from the sideways pattern.

Baby Doge is trading below the eight-day and 21-day exponential moving averages with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is also trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.

  • Bulls want to see big bullish volume pop Baby Doge up over the eight-day EMA and then for continuing momentum to push it up above the $0.000000001623 level. Above the area, there is further resistance at $0.000000001869 and $0.000000002185.
  • Bears want to see big bearish volume come in and drop Baby Doge down below the key support level. Below the level there is further support at $0.000000001042 and $0.000000000761.

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