AMC Entertainment Holdings, Inc (NYSE:AMC) CEO Adam Aron posted a poll on Twitter asking his followers if the theater chain should explore adding Dogecoin (CRYPTO: DOGE) as a payment option when it begins accepting Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Litecoin (CRYPTO: LTC) and Bitcoin Cash (CRYPTO: BCH) later this year. At press time the results of the poll had 72.7% of respondents voting “yes, for sure do it.”
Dogecoin has been negatively affected by its relation to both Bitcoin and the general markets, which have taken a downturn recently. It looks as though a reversal for the Shiba-Inu-themed crypto could be in the cards, however, and on Tuesday Dogecoin was holding up stronger than Bitcoin.
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The Dogecoin Chart: On Monday Dogecoin slammed into a support level just below the 20-cent mark and bulls bought the dip, which caused the crypto to print a large red candle with a lower wick. On Tuesday Dogecoin retested the level but bulls came in again and propped the crypto back up over 20 cents.
The two-day price action caused Dogecoin to create a tweezer bottom pattern, which is a reversal indicator for technical traders. A tweezer bottom pattern indicates that a bearish trend may be turning bullish but higher prices on Wednesday will be needed to confirm the formation was recognized.
Dogecoin’s relative strength index (RSI) reached 31% on Tuesday, which puts the crypto near overbought territory. When a stock or crypto’s RSI nears or exceeds the 30% level, it’s a buy signal for technical traders because RSI always corrects back toward the 50% level although it can stay extended for long periods of time.
Dogecoin is trading below the eight-day and 21-day exponential moving averages with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is also trading below the 200-day simple moving average, which indicates long-term sentiment is currently bearish.
- Bulls want to see a reaction to the tweezer bottom pattern and for big bullish volume to come in and pop Dogecoin back up toward the 23-cent level. If the crypto can regain the level as support, it has room to paw its way back up toward 27 cents.
- Bears want to see big bearish volume drop the crypto down below the 20-cent mark. If Dogecoin loses the level as support, it could fall further toward the 16 cent mark.