Dogecoin (CRYPTO: DOGE) lost to Shiba Inu (Crypto: SHIB) in a Benzinga poll that asked whether followers own SHIB or DOGE. More than 44% of the 17,000 respondents said they owned only SHIB compared to 31.7% who own only Dogecoin. About 16% voted they owned both coins.
Dogecoin looks like it could be a winning trade, however, if the crypto breaks up bullishly from the bull flag pattern it has developed on the daily chart.
See Also: How to Buy Dogecoin
The Dogecoin Chart: On Oct. 1 Dogecoin broke up from a descending triangle that had been holding the crypto down since Sept. 17. Dogecoin then consolidated the move higher by settling into a bull flag pattern, which it broke up from on Oct. 4.
The move higher on the date paired with the higher prices on Tuesday and Wednesday look to have created the pole of another bull flag pattern with the flag formed between Wednesday and Friday.
On Friday Dogecoin attempted to break up from the flag pattern but rejected the upper descending trendline and wicked from it. The wick, together with the lower body may cause Dogecoin to print a classic inverse hammer candlestick pattern. If the pattern is recognized, Dogecoin may break up bullishly from the flag over the weekend.
Dogecoin is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading about 12% above the 200-day simple moving average, which indicates overall sentiment is bullish.
- Bulls want to see Dogecoin break up through the bull flag pattern on big bullish volume. If the crypto can then regain the 27-cent level, it has room to trade back up toward 30 cents.
- Bears want to see the crypto continue to reject the upper descending trendline of the flag formation and for Dogecoin to continue trending downwards until it loses support at 23 cents. Below the level, there is further support at 19-cent mark.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This news is republished from another source. You can check the original article here