Dogecoin DOGE/USD has analysts and traders discussing when the meme coin leader will form a bullish trading pattern for its next upside move.
What Happened: Crypto trader Kevin recently shared his analysis of Dogecoin’s current market patterns. He noted a developing bearish descending triangle pattern, though he clarified that it’s not distinctly defined and wouldn’t be considered textbook.
Despite the bearish outlook, Kevin suggested that now would be an ideal time for Dogecoin to form a right shoulder for a textbook inverse head and shoulders pattern, with a price target of $0.22.
Kevin also pointed out that most altcoins have taken a hit after a bearish week, losing their key daily moving averages. He stressed that the upcoming week’s economic data would be a significant catalyst in determining whether the market heads higher or enters a deeper and longer correctional period.
Another trader, Crypto Daily Trade Signals notes that the price below the $0.1450 level and the 100 SMA (4 hours) is a bearish trend line "forming with resistance at $0.1430 on the 4-hour chart of the DOGE/USD pair." The trader estimates the price to settle above $0.1450 to move into a positive zone and start a fresh surge.
Price Action: In the past 24 hours, DOGE is trading 5.5% higher to trade at $0.1509.
Also Read: What Does Technical Analysis Say About Dogecoin And Shiba Inu?
Why It Matters: IntoTheBlock data highlights an increase in transactions greater than $100,000 to 204 transactions on May 12 from 160 transactions on May 11. Total exchange inflows surged to $10.93 million from $7.97 million in a single day.
Daily active addresses and large transaction volumes have also grown 11.8% and 5.4%, respectively. Despite a weekly and monthly loss, 79% of Dogecoin holders continue to remain in profit.
The crypto trader's mention of the potential for an inverse head and shoulders pattern suggests that despite the bearish outlook, there may be growth opportunities soon.
However, as with all market predictions, investors should approach with caution and consider multiple sources of information before making investment decisions.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Dogecoin Down 6%: Time To ‘Play It Safe,’ Suggests Trader
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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