Dogecoin Continues To Gain Utility As The Crypto Rests Before Next Leg

Dogecoin DOGE/USD was trading 2% lower on Monday despite the cryptocurrency now being supported on BitPay’s crypto debit card to use for purchases on Amazon.com, Inc AMZN. The addition of Dogecoin as a supported payment option adds utility to the crypto.

Dogecoin’s transaction fees were slashed from 1 DOGE /kb to a recommended minimum of 0.1 DOGE/kb when Dogecoin Core released its 1.14.5 update on Nov. 8. This may entice more retailers and payment services to accept the cryptocurrency as a payment option.

Since Oct. 4, Dogecoin has closed each 24-hour session within the $0.221 and $0.298 range as it consolidates within a mostly sideways pattern on decreasing volume. Like most cryptos, Dogecoin is likely to enter another volatile phase when either bullish or bearish volume begins to increase, which could be prompted by a pattern on the daily chart being recognized.

The Dogecoin Chart: Since Nov. 8, Dogecoin has been trading under a descending trendline but closing each session above a horizontal line at the $0.255 mark, which has shaped the crypto into a descending triangle pattern. Dogecoin is set to meet the apex of the triangle on Nov. 17 and traders can watch to see if big volume enters when the crypto breaks up or down from the pattern to confirm whether the formation was recognized.

On Monday afternoon, Dogecoin’s trading volume sat at about 157 million compared to the average 10-day volume of 319 million. When a stock or crypto has lower-than-average trading volume it indicates there is a lack of interest, which points to consolidation.

If Dogecoin breaks down from the pattern and falls beneath the Nov. 10 low at the $0.237 mark it will print a lower low on the daily chart. Dogecoin may have already printed a higher-low on Friday at $0.271 and if the crypto makes a lower low a downtrend will be confirmed.

Dogecoin is trading slightly below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day and 21-day trading inline, which favors the bears, however, if Dogecoin breaks up from the triangle it will easily regain support of the EMAs. Dogecoin is trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.

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Bulls want to see big bullish volume push Dogecoin up through the descending trendline of the pattern and then for sustained volume to cause the crypto to print a high above $0.271, which would negate a downtrend. There is resistance above at $0.298 and $0.319.

Bears want to see big bearish volume come in and break Dogecoin down below the horizontal line of the triangle, which could force the crypto down to retest a support level at $$0.248. Below the level, there is further support at 23 cents and just below the 22-cent mark.