Why Dogecoin Rallied Higher After Joining The Crypto Party Late

Dogecoin DOGE/USD showed up late to the crypto party, just as Benzinga called out on Friday, but had a howling good time once it arrived. On Monday, the Shina Inu-themed alt-coin ran over 15% north before slamming into a resistance level near the 27-cent mark, where it rejected and wicked from the level.

The cryptocurrency market has been on fire lately with Bitcoin BTC/USD gaining almost 50% of its value since Sept. 30 and Ethereum ETH/USD trading over 30% higher over the same time period. The momentum in the crypto market was further spurred by an announcement the first Bitcoin futures ETF is slated to begin trading on Tuesday.

See Also: Hate On Dogecoin All You Want, But 70% Of Dogecoin Holders Are In Profit

The Dogecoin Chart: After slamming into the overhead resistance level, Dogecoin retreated about 6% and began to consolidate sideways on lower timeframes. The consolidation has set Dogecoin into a tightening range on the four-hour chart with the most recent four hours of trading falling within the previous four-hour range, which has created a bullish inside bar pattern.

On the 24-hour chart, Dogecoin is trading in a confirmed uptrend, which began on Oct. 12 when the crypto hit a bottom at the 21-cent level. Dogecoin has since created a series of higher highs and higher lows, with the last low falling at $0.225. Dogecoin will need to hold above the level for the uptrend to stay intact.

The higher-than-average volume on Monday indicates there is a high level of trader and investor interest in Dogecoin. As of late midafternoon, the crypto had a volume of over 600 million compared to the 10-day average of 280 million.

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 move higher on Monday also allowed Dogecoin to regain the 50-day simple moving average as support, which indicates the longer-term sentiment in the crypto has turned bullish.

• Bulls want to see continued sideways consolidation on low volume and then for big bullish volume to come in and break Dogecoin up to make a higher high above 27 cents. If Dogecoin can regain the level as support it has room to trade back up toward $0.298.
• Bears want to see big bearish volume drop Dogecoin down to make a lower low on the 24-hour chart to negate the uptrend. Dogecoin has support below at the 23-cent and 21-cent levels.

Photo: Executium via Unsplash