Crypto Markets

Elon Musk Stands Up for ‘the Little Guy,’ and Dogecoin Retains Key Trendline: What’s Next for the Crypto?

Dogecoin Retains Key Trendline

Tesla Inc TSLA -4.14 percent + Free Alerts Tesla Inc TSLA -4.14 percent + Free Alerts Tesla Inc TSLA -4

On Twitter Inc., Elon Musk aimed at Binance CEO Changpeng Zhao (“CZ”) on Tuesday.

TWTR -0.40% + Free Alerts following a Binance malfunction that resulted in Dogecoin DOGE holders’ cash becoming frozen on the exchange.

Later, Billy Markus, the co-creator of Dogecoin, applauded Musk for “standing up for the little guy” and advised all cryptocurrency users to avoid “keeping your crypto on an uncontrolled exchange.”

Dogecoin has been a hazardous move for bullish traders recently, with the price dropping almost 36% from its October 30 high of $0.34 to Tuesday’s low of $0.214. If the cryptocurrency can reclaim a crucial trendline, a reversal could be in the cards.

The Dogecoin Chart: Dogecoin plummeted below a long-term trendline that has been acting as support since July 20 on Monday. Dogecoin was able to jump back up above the trendline on Tuesday after the bearish break occurred on little volume and there was no follow-through on the move.

On the daily chart, Dogecoin is in a fairly consistent downtrend, with the most recent lower high of $0.241 printed on Nov. 18 and the slightly lower low of $0.241 recorded on Tuesday. If the decline continues, traders should keep an eye out for another lower high before Dogecoin goes below $0.214.

With the price action of each day combined, Dogecoin may have printed a bullish double bottom pattern at the level. Tuesday’s lower low is just slightly below the Nov. 18 low of $0.216, and with the price action of each day combined, Dogecoin may have printed a bullish double bottom pattern at the level. If the pattern is detected, traders should look for increased volume to come in on Wednesday, pushing the cryptocurrency higher.

Dogecoin is currently trading below its eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA going lower than the 21-day, both bearish signs. The cryptocurrency is also trading below its 50-day simple moving average, indicating a bearish longer-term outlook.

Bulls hope to see Dogecoin close the 24-hour candle above the rising trendline and then see increased volume to help the cryptocurrency reclaim the 23-cent level as support. Further resistance is found above the area at $0.248.

Bears hope to see Dogecoin go back below the trendline, followed by a surge in bearish volume that pushes the cryptocurrency below $0.216. If Dogecoin fails to hold the support level, it could fall to $0.196.

Bulls hope to see Dogecoin close the 24-hour candle above the rising trendline and then see increased volume to help the cryptocurrency reclaim the 23-cent level as support. Further resistance is found above the area at $0.248.

Bears hope to see Dogecoin go back below the trendline, followed by a surge in bearish volume that pushes the cryptocurrency below $0.216. If Dogecoin fails to hold the support level, it could fall to $0.196.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.