Dogecoin according to Tesla, you (NASDAQ: TSLA) Chief Executive Officer Elon Musk.
Cryptocurrency gained a lot of new benefits here on Earth in 2021, however, if Dogecoin continues to be adopted as a payment method for goods and services in the coming year, its price could rise as a result.
Dogecoin is currently stumbling due to the price of the cryptocurrency Bitcoin (CRYPTO: BTC), which Dogecoin tends to trade side by side. On Monday, Bitcoin was trading down about 2% while Dogecoin followed, losing nearly 3% of its value by mid-afternoon.
CEO of Ballet Crypto Bobby Lee I took to Twitter on Sunday to suggest canceling the year-end “Rise of Santa Claus” in the crypto sector due to the impending “latest hammer” drop in China. The major exchanges had until December to deregister their Chinese clients, which has so far been delayed and could lead to the forced withdrawal of coins and tokens from trading platforms.
China has banned bitcoin and other cryptocurrencies somewhat multiple times since 2013, cracking down on miners, merchants and financial institutions. Although the Chinese government has not yet been able to completely eliminate the exchange activity within its borders. However, if China succeeds, 2022 could be another turbulent year for the sector.
For now, at least, Dogecoin and other cryptocurrencies should continue to stick to their chart patterns as algorithms and bots remain as active in this sector as they are in the stock market.
See also: If you invested $1,000 in Bitcoin, Dogecoin, and Ethereum at the beginning of 2021, here’s how much you have today
Dogecoin chart: On Monday, Dogecoin was trying to hold above the lower uptrend line of the ascending channel pattern. The ascending channel, when paired with the bearish pole that formed between Dec 27 and Dec 29, may have Dogecoin settling in a bearish flag formation on the daily chart.
If the bear pennant is recognized, the measured movement of the pattern is about 13%, which indicates that Dogecoin could retreat further towards the 15-cent level. If Dogecoin breaks out of a bullish channel (or flag), traders will want to watch for increased bearish volume to confirm pattern recognition.
On Sunday, Dogecoin may have printed a lower top, which could indicate that a downtrend is about to occur. For the trend to be confirmed, Dogecoin will need to break below the latest low printed on December 30th at $0.165.
Dogecoin is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trading below the 21-day, both of which are bearish indicators. The cryptocurrency is also trading below the 50-day simple moving average, which indicates that the long-term sentiment is bearish.
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- Bulls would like to see Dogecoin holding above the lower trend line of the channel and then entering a significant bullish volume and pushing the cryptocurrency higher above Sunday’s high of $0.176, which would nullify the impending downtrend. There is a newly created resistance above that level at $0.196.
- Bears would like to see a large bearish volume intervene and break Dogecoin down from the bear pennant. Support is located below at 16 cents and 13 cents.
Related Link: Elon Musk Explains Why Dogecoin Won’t Be the ‘Official Currency of Mars’