Dogecoin assessments the endurance of its house owners, nips at a very powerful stage of assist – Benzinga – Benzinga

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Dogecoin (CRYPTO: DOGE) turned into a bad, bad boy after becoming the litter’s choice, rising nearly 950% between April 13 and May 8, staggering before another breakdown.

However, the Shiba Inu-inspired cryptocurrency has followed with leaders Bitcoin (CRYPTO: BTC) and ether (CRYPTO: ETH) down around 39% and 49% respectively on Friday.

See Also: Dogecoin Co-Creator Warns Of Borrowing To Buy Volatile Speculative Assets Is “Absolutely Insane”

The Dogecoin Chart: Dogecoin has been trading in a descending triangle since May 14th, making lower highs on the daily chart. Instead of hitting lower lows and entering a steep downtrend, it has held a low of 29 cents and has not closed a day below that level since hitting new all-time highs.

When a cryptocurrency or stock tests a trend line multiple times, it weakens it and increases the likelihood that it will break the level. Dogecoin has tested both the upper downward sloping trendline of the descending triangle and its 29 cent support level several times, making it difficult to predict which direction might come next.

However, on Friday afternoon, Dogecoin was trading slightly below the support level and bulls will want to see the crypto close again above that for the day.

Dogecoin trades below both the 8-day and 21-day Exponential Moving Average (EMA), with the 8-day EMA trending below the 21-day EMA, which is bearish. Dogecoin is trading above the simple 200-day moving average, which suggests that while short-term sentiment is trending bearish, the overall sentiment of the coin remains bullish.

Bulls want Dogecoin to break the top trend line of the triangle and a large bullish volume to drive crypto back up above the 8- and 21-day EMAs. If it can regain both EMAs as support, it could jump over its next resistance at 34 cents.

Bears want to see the descending trendline of the Dogecoin triangle push further down and close below 29 cents. If vital support is lost, Dogecoin could trade towards the 24 cent level before potentially scraping back up.

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© 2021 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.

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