Is Dogecoin Ready To Wake Up And Go On A Tear? The Answer May Be Coming In Days

Dogecoin DOGE/USD has been in a sleepy slumber since Jan. 22 when the crypto fell to the 12-cent level and immediately bounced up above the 13-cent mark. Since that date, Dogecoin has mostly traded sideways, closing the last nine 24-hour trading sessions within a 1-cent range between $0.133 and $0.143.

On Monday, Dogecoin co-creator Billy Markus used the meme to wish his followers a Happy Lunar New Year on Twitter. The day marks the beginning of a new year in China and for its citizens this lunar year will be not be represented by a dog but by a tiger.

The next year of the dog won’t come until 2030, but Dogecoin enthusiasts will likely continue to cheer on the Shiba Inu-themed crypto this year, just as they did in 2021 when Doge soared almost 16,000% to reach a May 8 high of 79 cents before starting a long-term downtrend.

Currently trading at about 14 cents, Dogecoin may be ready to make another break higher if it is able to break up from the horizontal pattern.

See Also: Bitcoin, Ethereum, Dogecoin Expected To Remain Muted With Lunar New Year — Is It Time To Buy When 'Bulls Become Bears?'

The Dogecoin Chart: Within Dogecoin’s horizontal trading pattern, the daily trading range has been tightening as the crypto runs out of both buyers and sellers. This demonstrates a period of consolidation, which will eventually end when the crypto breaks up or down from the pattern on higher-than-average volume.

• Dogecoin may also be settling into a triangle pattern on the daily chart. If that pattern is recognized, Dogecoin could reach the apex of the triangle on Feb. 2 and traders can watch for the crypto to break up from the descending trendline of the pattern or down from the ascending bottom trendline on higher-than average volume to gauge future direction.
• By mid-afternoon on Monday, Dogecoin’s trading volume was measuring in at just 159,726 million, which is far below the 10-day average of 395,253. This indicates there is currently little interest in the crypto.
• Dogecoin is currently rejecting the eight-day exponential moving average on the daily chart. Bullish traders may want to wait until the crypto has regained the area as support for more confidence going forward.
• Dogecoin has resistance above at $0.146 and 16 cents, and support below at $0.135 and the 21-cent level.

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