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Dogecoin (CRYPTO: DOGE) lost to Shiba inu (Crypto: SHIB) in a Benzinga poll that asked if subscribers own SHIB or DOGE. Over 44% of the 17,000 respondents said they only own SHIB, compared to 31.7% who only own Dogecoin. About 16% voted they owned both coins.
Dogecoin, however, appears to be a winning trade if the crypto separates bullish from the bullish flag pattern it developed on the daily chart.
See also: How to buy Dogecoin
The Dogecoin table: On October 1, Dogecoin broke away from a descending triangle that had held the crypto together since September 17. Dogecoin then consolidated the upward movement by settling into a bullish flag pattern, which it parted with on October 4.
The higher on-date move associated with the higher prices on Tuesday and Wednesday appears to have created the pole of another bullish flag pattern with the flag formed between Wednesday and Friday.
Dogecoin attempted to break away from the flag pattern on Friday, but rejected the upper descending trendline and turned away from it. The wick, as well as the lower body, can cause Dogecoin to imprint a classic inverted hammer candlestick pattern. If the pattern is recognized, Dogecoin may separate bullish from the flag over the weekend.
Dogecoin trades above the eight- and 21-day Exponential Moving Averages (EMA) with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The crypto is also trading at around 12% above the 200-day simple moving average, indicating that overall sentiment is bullish.
- Bulls want to see Dogecoin break the bull flag pattern on a big bullish volume. If the crypto can then regain the 27 cent level, it has room to return to around 30 cents.
- The bears want to see the crypto continue to reject the upper downtrend line of the flag formation and Dogecoin continue to move lower until it loses support at 23 cents. Below the level there is further support at 19 cents.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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