Does Dogecoin Need A Breather Before Making Another Run?

Dogecoin DOGE/USD is trading lower Tuesday after cooling off a bit from its run over the past week. The crypto is falling back toward a potential support area. Dogecoin continues to be the most popular meme crypto in the market.

Dogecoin was down 8.73% at $0.29 at time of writing.

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Dogecoin Daily Chart Analysis

• Dogecoin has been forming a cup pattern higher toward resistance. The crypto made a decent run last week and is now cooling off and moving back toward the support from the cup pattern.
• The crypto trades above both the 50-day moving average (green), and 200-day moving average (blue) indicating recent sentiment in the crypto has been bullish.
• Each of these moving averages could hold as an area of support in the future.
• The $0.45 level acted as resistance in the past and may again if the crypto can reach this area. Dogecoin has been holding above the cup pattern, and this cup may continue to hold as support.
• The Relative Strength Index (RSI) saw a slight push lower and now sits at 54. This means that even though some sellers entered into the crypto lately, Dogecoin still has more buyers than sellers overall.

What’s Next For Dogecoin?

Bullish traders would like to see Dogecoin bounce off the cup pattern support and continue to move higher along the pattern. Bulls would then like to see the crypto break out above the $0.45 resistance level.

Bearish traders are looking to see Dogecoin break below the cup pattern and start to fall lower. Bears would then like to see the crypto cross below the moving averages for a possible change in sentiment and trend.