- The Double Bottom formation in Dogecoin shows a possible technical breakout with resistance at the $0.32 level.
- More volume proves breakout is genuine due to a return of trading activity to the area.
- As it has been previously discussed, competitive market trends and volume changes still hold the key to understanding the fate of the Dogecoin.
Fresh trends of cryptocurrency trading profile Dogecoin in its current technicals shows a ‘Double Bottom’, which symbolizes a bullish reversal in technical analysis. This pattern, as identified on a three-hour interval, has raised eyebrows of traders and analysts as it suggests upward movement of the digital asset.
The pattern suggests that selling could have exhausted leading to the formation of a buyers’ market. In the case of theDogecoin Cryptocurrency, the appearance of this pattern suggests an upward trending mechanism.
Essential Highlights from the Chart
From the Dogecoin chart, the Double Bottom pattern can be seen as the chart shows a “W” pattern with two large dips in particular. The lows were however followed by a sharp rise above the neckline which is a crucial line considered as the resistance level.
The breakout of the consolidation is a strong affirmation of this picture and, therefore, of the buy signal. The analysis of the charts was done when Doge was above the $0.32 level, which proved its strength and upward movement.A formation of a Double Bottom mostly helps traders determine that there will be an uptrend shortly.
The breakout above the neckline is even followed by the increase in the trading volume For Dogecoin, it may be the change from the bearish side to the bullish side of the participants. Nevertheless, the traders should also take caution in other circumstances such as overall market volume and other related factors before investing.
Broad Market Overview
As for Dogecoin’s Double Bottom pattern, this is quite healthy but its future will largely depend on general trends on the market. More specifically, it can be advised to pay more attention to support and resistance indicators as well as the volume of trading. The Double Bottom pattern paints the picture of an upward trend for the cryptocurrency, however traders should take caution when engaging in such a process.
Crypto News Land, also abbreviated as “CNL”, is an independent media entity – we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
