Dogecoin dog / dollar It rose 10% sometime on Sunday, backed by Tesla Corporation TSLA Executive Director, Elon MuskTwitter suggests that users will be able to use cryptocurrency to pay for the Twitter Blue subscription service for the social media app.
Dogecoin was also going through a technical breakout from a four-bottom pattern and an inside column formation, which Benzinga called for on Saturday.
The breakout launched Dogecoin into a confirmed four-hour uptrend pattern, which is likely to eventually confirm the uptrend pattern on the daily chart if the crypto is able to print a higher bottom above the four-hour bottom near the 14 cents level.
An uptrend occurs when a stock or cryptocurrency constantly makes a series of higher highs and higher lows on the chart.
Higher highs indicate bulls dominating, while choppy higher lows indicate periods of consolidation. Traders can use moving averages to help identify an uptrend, with higher lower time frame moving averages (such as eight-day or 21-day exponential moving averages) indicating that the stock is in a sharp short-term uptrend and higher longer-term moving averages (such as the averaging The 200-day SMA indicates a long-term uptrend.
A stock or cryptocurrency often indicates a higher rise by printing a reversal candlestick such as a doji, bearish candle, or hanging candlestick. Similarly, a higher low can be reported when a Doji, Morning Star or Hammer candlestick is printed. Moreover, higher tops and higher bottoms often occur at resistance and support levels.
In an uptrend, the “trend is your friend” so it is not, and in an uptrend there are ways for both up and down traders to participate in the stock:
- Bullish traders who are already holding a position in stocks or cryptocurrencies can feel confident that the uptrend will continue unless the cryptocurrency reaches a lower bottom. Traders looking to take a position in cryptocurrency trading in an uptrend can usually find the safest entry at the higher bottom.
- Bearish traders can enter the trade at the higher top and exit on the pullback. These traders can also enter when the uptrend breaks and the stock makes a lower low, which indicates that a reversal to the downside might be in the cards.
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Dogecoin four hour chart: At 10:00 pm on Saturday, Dogecoin was up more than 5% before consolidating the next eight hours. The rally coupled with the consolidation stabilized Dogecoin in a bull flag pattern and at 8:00 am on Sunday the cryptocurrency reacted with a bullish flag pattern and rose an additional 5% before starting to consolidate again with an inside bar.
- Cryptocurrency trading started in a four-hour bullish trend at 10:00 PM on Friday and has since created a consistent series of higher highs and higher lows. The latest low was printed at 4:00 am on Sunday, and the latest high was printed at 10:30 am
- The higher turnover came in above average trading volume on shorter time frames, indicating a high level of trader and investor interest in Dogecoin. When a stock or cryptocurrency breaks or falls from a pattern on above average volume, it confirms that the pattern has been recognized by the algorithms.
- On the daily chart, a move higher caused Dogecoin to reclaim support at the eight-day EMA, which will result in the eight-day EMA continuing the trend above the 21-day, giving bulls more confidence in the future. The cryptocurrency is also trading well above the 50-day simple moving average, which indicates that the long-term sentiment is bullish.
- Finally, Dogecoin will enter another period of consolidation and bullishness, and traders and investors who are not already in a position can watch the cryptocurrency for stability in a bull flag pattern or an inside bar pattern on the daily chart. If the crypto prints either of these two consolidation patterns, it will provide a strong entry point at the higher low.
- Dogecoin has higher resistance at the 16 cents mark at $0.176 and support below at $0.146 and $0.135.
See also: Elon Musk pushes Dogecoin payment option for Twitter blue subscription