Dogecoin Acts As The Party Pooper As Fans Celebrate The Crypto's Birthday: What's Next?

Dogecoin DOGE/USD was trading slightly higher in consolidation on Monday after a flash crash during Saturday’s 24-hour trading session dropped the crypto almost 30% lower over the course of just 45 minutes.

Although Dogecoin shot up over 9% off its low-of-day at one point, the rally wasn’t much considering it’s the crypto’s eight birthday. Perhaps dogs, like some people, become less interested in celebrating their birthdays as they age and in human years Dogecoin would be 51 today, which isn’t even a milestone birthday.

Nonetheless, retail traders on social media celebrated with many on Twitter posting memes of a Shiba Inu in a birthday hat, including Dogecoin’s co-creator Billy Markus who wrote above his image “2021 was the second strangest year of my life, only eclipsed by 2013. The year dogecoin was born.”

Markus later wrote on Twitter "the sign of a good crypto community is resilience and effort when the price isn’t booming."

Many of his followers echoed his sentiment in response with one follower, @imashine420, replying “Dogecoin has helped me become a better human being.”

Despite the positive community message, the Dogecoin community rallies around the crypto has been in a downward spiral since Oct. 28 when it hit a high at the 34-cent mark. There are indications Dogecoin may be in for at least a bounce, however, as it enters its ninth year.

See Also: How to Buy Dogecoin

The Dogecoin Chart: Dogecoin has been trading in a solid downtrend, making a consistent series of lower highs and lower lows on the daily chart. The crypto’s most recent lower high was printed on Nov. 30 at the $0.228 mark and the most recent lower low was created on Saturday at $0.135.

On Sunday, Dogecoin was able to pop back up over a key support level at 16-cents, which was positive for the bulls because the crypto has held above the level for many months. Dogecoin tested the level as support again on Monday, wicked and held above it. The long lower wick demonstrates there are dip buyers between 16 cents and the 17-cent mark.

Dogecoin’s relative strength index (RSI) has fallen to about the 28% level, which puts the crypto square into oversold territory and can signal a buying opportunity for technical traders. When Dogecoin’s RSI dipped below 30% on July 16 and the crypto soared up almost 120% between that date and Aug. 16.

Dogecoin is trading below the eight-day and 21-day exponential moving averages (EMAs), 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.

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• Bulls want to see big bullish volume come in and push the crypto back up over the 19-cent level, which may put it within grasp of printing a higher high and indicate a possible trend change. Dogecoin has resistance above at $0.211 and at 23 cents.
• Bears want to see big bullish volume come in and drop Dogecoin to close a 24-hour trading session below 16 cents, which would indicate the key support level would act as heavy resistance. Below the area there is further support at Saturday’s low at the $0.135 mark.