Dogecoin Got Caught In A Leash: What’s Next?

Dogecoin (CRYPTO: DOGE) has remained tangled up in a tight range.

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), the leaders of the crypto pack, have been in long periods of consolidation after dropping significantly from their April all-time highs of $64,899 and $4384, respectively. Dogecoin is also down 68% from its May 8 all-time high of $0.739 and looks to have laid down at around the $0.236 level.

See Also: What is Dogecoin And How Can You Buy It?

The Dogecoin Chart: Dogecoin’s volatility has decreased substantially over the past seven days and on Friday the crypto was fluctuating within a one-cent range between $0.238 and $0.248. The decreased volatility is linked to extremely low volume on Dogecoin’s chart, which indicates there is little buying or selling happening in the crypto.

Dogecoin is nearing the apex of a descending triangle and is being pushed down by the upper sloping trendline of the triangle and supported by the horizontal support line of the pattern. When Dogecoin meets the apex on Saturday, if the pattern is recognized, an increase in volume can be expected to break it up bullishly or down bearishly from the triangle.

Dogecoin is trading below both the eight-day and 21-day exponential moving averages (EMAs) and on Friday the eight-day EMA was acting as immediate resistance.

Dogecoin is also trading below the 21-day EMA with the eight-day EMA trending below the 21-day EMA, both of which are bearish indicators. The crypto is also trading below the 200-day simple moving average which indicates overall sentiment in Dogecoin is bearish.

Bulls want to see big bullish volume come in and walk Dogecoin over the descending trendline and toward its next resistance level at $0.279. This would also allow Dogecoin to regain the eight-day and 21-day EMAs as support.

Bears want to see the upper trendline continue to push Dogecoin down until it loses support at $0.236. If the crypto falls below the level, it could revisit $0.163 before bouncing like it did on June 21 and 22.

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