Dogecoin DOGE/USD is battling bearish technical indicators, even though some traders remain bullish on its potential compared to Bitcoin.
What Happened: Crypto trader Kevin suggested that the altcoin season might be closer than ever, based on the latest Dogecoin/Bitcoin chart. He pointed to a fresh 3-day Moving Average Convergence/Divergence indicator (MACD) cross to the upside on the chart: "The last time we saw this cross DOGE pumped 100% against BTC showing a big outperformance in 60 days.”
Kevin added the potential impact of an upcoming Federal Reserve pivot and Bitcoin's dominance nearing its macro target. He hinted at the possibility of an imminent altcoin season but emphasized the need for patience.
For the unfamiliar, MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price.
Also Read: Dogecoin ‘Attempting A Breakout:’ These Are The Price Points To Watch
Why It Matters: IntoTheBlock data shows an 11.7% decrease in large transaction volume to $1.09 billion and daily active addresses dropping by 5.5%. Exchange netflows narrowed by 435.8%.
Based on Benzinga's technical analysis tool, Dogecoin's chart shows a bearish trend, as its 50-day simple moving average price is currently lower than the 100-day and 200-day SMA. This implies recent price weakness relative to longer-term averages and potential further downside risk.
Some traders still think Dogecoin will continue to do well:
Price Action: In the past 24 hours, DOGE is trading 3% down, bringing its 30-day performance to +2.5%.
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 Heading To $0.30? ‘Good One If You Want To Capture Some Of The Meme Mania,’ Top Trader Says
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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