Dogecoin (CRYPTO: DOGE) is trading higher Wednesday, moving up with the rest of the bullish crypto market. Dogecoin trades in a similar pattern to the Ethereum Classic chart, climbing along a cup pattern and looking to see a breakout above resistance soon.
Dogecoin was up 8.38% at $0.279 at last check.
Dogecoin Daily Chart Analysis
- Dogecoin has been forming a cup pattern (orange) inside of a sideways channel.
- The crypto trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment has been bullish.
- These moving averages may both hold as an area of support in the future.
- The $0.45 level has held as resistance in the past for the crypto. Dogecoin then bounced off support twice and has been moving in a cup-shaped pattern toward resistance.
- The Relative Strength Index (RSI) has been climbing higher and now sits at 70. The RSI is now at the border of the overbought range, and if it climbs higher the price may climb with it.
Bullish traders want to see Dogecoin continue to climb while holding above the cup pattern. If the price can cross resistance as the RSI climbs higher into the overbought range, the crypto could see a large upward move.
Bearish traders are looking to see Dogecoin break below the cup pattern and fall to support. A break below the $0.15 level with consolidation below could move the crypto down further.
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