2018-11-3 19:49 |
Another day without a drop is making the scenario for Dogecoin more bullish. Yesterday, we discussed how price action and RSI were forming a higher low for Dogecoin. Each day without a drop which nullifies the higher low makes it more likely that the prolonged decline for Dogecoin has come to an end.
Dogecoin has been on a prolonged decline since early September after price spiked from strong support at $0.002 to a high near $0.007. The price spike resulted in a bearish divergence forming where the price went on to form a higher high despite RSI forming a lower high. The price has been in a decline since and currently trades around $0.38. Price has been trading relatively flat for the past four days.
The MACD also seems to be starting to converge to the centerline, a sign of seller momentum shifting back to the buyers. The MACD had been moving downward since the decline started and recently started to trade flat. If the MACD starts to converge, it will cross its signal line to the upside which is typically considered a bullish signal.
The recent volume in Dogecoin has been low, another sign of the strength being lost from the decline. While most altcoins have been mirroring Bitcoin, Doge has been following its own trajectory meaning it’s not as important for traders in Doge to monitor the movements of market leader Bitcoin. While a significant bearish or bullish move in Bitcoin may have some crossover to Doge, it would not be mirrored to the same magnitude as other altcoins.
The key thing for traders in Doge to currently monitor is any downward movement. A downward movement would likely result in a lower low being formed instead of a higher low. this scenario would indicate a continuation in the decline which has been taking place since early September in Doge. In this scenario, price action moving towards support near $0.002 is a possibility.
Doge Daily Chart – Source: TradingView.com Key Takeaways: Another day of sideways trading for Doge which makes a bullish scenario more likely as a higher low seems to be forming. Dogecoin has been declining since early September after a bearish divergence formed but a number of factors indicate that this decline may be coming towards its end. The key factor to monitor in Dogecoin is the next significant movement. A significant movement to the upside confirms the higher low whereas a significant move to the downside may set Doge on a trajectory towards support at $0.002.The Daily Dogecoin [Doge] Analysis – Another Day without a Drop was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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