Dogecoin continues to stir interest across the cryptocurrency market. Speculation shoot up after a tweet by Elon Musk, the founder of Tesla. At the time of writing, DOGE is trading at $0.046 after hitting a barrier at $0.055. Support is needed to place the ‘Meme Coin’ back on the recovery trajectory eyeing $0.09.
DOGE is dancing at the apex of a symmetrical triangle. The pattern is created by connecting a series of lower highs with a trendline. Similarly, the asset’s higher lows are linked using another trendline.
Traders usually lookout for breakouts or breakdowns from the triangle. A breakout occurs after the price slices through the upper trendline. In the case of Dogecoin, a 75% upswing may come into action if the price rises above the pattern. Triangles are essential in trend prediction because they have exact price targets measured from the highest to lowest points.
DOGE/USD 4-hour chart
According to the Santiment, Dogecoin’s social media-related mentions have started to increase consistently after falling massively early this week. An increase in social volume is a bullish signal and foresees a price rise. However, it is essential to watch out for the peak as it quickly turns bearish.
Dogecoin social volume
The IOMAP model by IntoTheBlock brings to light a strong resistance that could derail the upswing. This seller congestion zone runs from $0.046 to $0.048. Here, roughly 49,000 addresses had previously purchased nearly 9.4 billion DOGE. The investors in this range will be trying to come out of their positions, adding to the selling pressure.
Dogecoin IOMAP chart
On the downside, support exists but not as strong as the above resistance. Therefore, bulls must push for gains above $0.05 to avert potentially massive losses. Besides, the symmetrical triangle pattern suggests that a breakdown may extend to $0.0096.
The 50 Simple Moving Average, the 100 SMA, and the 200 SMA are in line to absorb the selling, thus preventing a sharp price drop.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Litecoin price rise might have tapped out sooner than expected, but as with the rest of the crypto market, one cannot ascertain what lies next for the altcoin. Interestingly, the answer is not as hidden as it may seem; in fact, it remains in the hands of the whale addresses more than the macro market cues.
XRP price is close to losing the profits the altcoin witnessed in the first week of November. One of the biggest catalysts when it comes to price action is the use cases of Ripple and XRP among banks, as well as their exposure to this altcoin. However, by the looks of it, Ripple has lost that crown to Polkadot.
dYdX (DYDX), a proof-of-stake blockchain network, suffered a huge loss following the recent incident in the Yearn.Finance network, compelling the network to dip into its insurance fund in a calculated attempt to fill the liquidity gap.
Bittrex Global, a UK-based regulated cryptocurrency exchange, announced that it will be winding down operations in the next two weeks. The exchange that caters to users outside of the UK is the second entity of the Bittrex brand to shut down following the bankruptcy of its US arm.
After the US Securities and Exchange Commission (SEC) announced a delay in their ETF decision, Bitcoin (BTC) price saw a quick uptick, which did not make sense. Currently, BTC is hovering below the $38,000 level, leaving investors guessing its next move.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.