All Aboard! Where's The Dogecoin Train Headed Next?

On Thursday, Dogecoin DOGE/USD went for a run while Shiba Inu SHIB/USD may have tired out at near the $0.00009 level and took a break.

The Dogecoin rally came later than some enthusiasts would have liked but traders and investors seem to have jumped into Dogecoin en masse Thursday, as the crypto’s volume had more than quadrupled by midafternoon.

Dogecoin co-founder Billy Markus, who returned early from a planned one-week-long Twitter Inc TWTR hiatus, said on the social media platform he is “pretty sure following crypto prices will cause mental health issues” but those aboard the "doge-train" were feeling ecstatic with the price action.

See Also: These Dogecoin and Shiba Inu Knock-Offs Are Striking Major Gains Today

The Dogecoin Chart: On Wednesday, Dogecoin negated the uptrend it had been trading in since Oct. 12 when the crypto made a lower low at the 22-cent level. The break from the trend was a bear trap, because on Thursday Dogecoin moved at one point to over 42% higher to the highest price the crypto has traded at since Aug. 17.

After hitting a high of 34 cents intraday, Dogecoin began to consolidate the move on lower timeframes. The consolidation is needed because Dogecoin’s relative strength index was measuring in at about 67%, which is near overbought territory and can be a sell signal for technical traders.

Although the price retraced slightly, the crypto was holding above the 30-cent level which is a key level in terms of both psychological and price history support. If Dogecoin closes the 24-hour session near its high of day it will print a bullish Marubozu candlestick, which could indicate higher prices will come on Friday. However, if Dogecoin closes the session with a long upper wick it could indicate consolidation is needed for the short term.

Dogecoin is trading above the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading above the 50-day simple moving average, which indicates longer-term sentiment is also bullish.

• Bulls will want to see Dogecoin hold above the 30-cent level and for sustained big bullish volume to push the crypto up above a higher resistance level just below the 32-cent mark. If Dogecoin can regain the level of support, it has room to trade up toward 35 cents.
• Bears want to see big bearish volume come in and drop Dogecoin down below the 30-cent level and for bearish momentum to force the crypto back down below 26 cents. Below that level there is further support at $0.248 and $0.23.

Photo by Executium on Unsplash