Dogecoin (CRYPTO: DOGE) retraced to the $0.196 area again on Friday. The level has become a significant support this week that the crypto has back tested several times.
Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said on Twitter it is “super important” for the Shiba-Inu themed crypto to lower its fees if it’s going to be used to make purchases for relatively inexpensive items such as movie tickets. The official Dogecoin Twitter account responded to say it has already lowered its fees on the 1.14.4 nodes.
The Dogecoin Chart: Dogecoin has created a quadruple bottom pattern on the daily chart just below the 20-cent level. The pattern is considered bullish by technical traders. If it’s recognized, Dogecoin may reverse course and trade higher.
The crypto has also been trading down in a descending channel pattern, making lower lows and lower highs between two parallel trendlines. The pattern is considered to be bearish as long as Dogecoin continues to reject the upper trendline, but these patterns often break bullish.
If the crypto breaks up from the pattern, traders will want to watch for high volume to come in for confirmation a reversal is in the cards.
Dogecoin 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 200-day simple moving average, which indicates overall sentiment is bearish.
- Bulls want to see big bullish volume come in and break Dogecoin up from the quadruple bottom and descending channel patterns. Dogecoin has resistance above at 23 cents and the 27-cent mark.
- Bears want to see big bearish volume drop Dogecoin down below the $0.196 level. If Dogecoin loses the level as support, it could fall all the way down to 16 cents.