Why Dogecoin Rallied Higher After Joining The Crypto Party Late

Dogecoin DOGE/USD showed up late to the crypto party, just as Benzinga called out on Friday, but had a howling good time once it arrived. On Monday, the Shina Inu-themed alt-coin ran over 15% north before slamming into a resistance level near the 27-cent mark, where it rejected and wicked from the level.

The cryptocurrency market has been on fire lately with Bitcoin BTC/USD gaining almost 50% of its value since Sept. 30 and Ethereum ETH/USD trading over 30% higher over the same time period. The momentum in the crypto market was further spurred by an announcement the first Bitcoin futures ETF is slated to begin trading on Tuesday.

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The Dogecoin Chart: After slamming into the overhead resistance level, Dogecoin retreated about 6% and began to consolidate sideways on lower timeframes. The consolidation has set Dogecoin into a tightening range on the four-hour chart with the most recent four hours of trading falling within the previous four-hour range, which has created a bullish inside bar pattern.

On the 24-hour chart, Dogecoin is trading in a confirmed uptrend, which began on Oct. 12 when the crypto hit a bottom at the 21-cent level. Dogecoin has since created a series of higher highs and higher lows, with the last low falling at $0.225. Dogecoin will need to hold above the level for the uptrend to stay intact.

The higher-than-average volume on Monday indicates there is a high level of trader and investor interest in Dogecoin. As of late midafternoon, the crypto had a volume of over 600 million compared to the 10-day average of 280 million.

Dogecoin is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The move higher on Monday also allowed Dogecoin to regain the 50-day simple moving average as support, which indicates the longer-term sentiment in the crypto has turned bullish.

• Bulls want to see continued sideways consolidation on low volume and then for big bullish volume to come in and break Dogecoin up to make a higher high above 27 cents. If Dogecoin can regain the level as support it has room to trade back up toward $0.298.
• Bears want to see big bearish volume drop Dogecoin down to make a lower low on the 24-hour chart to negate the uptrend. Dogecoin has support below at the 23-cent and 21-cent levels.
  
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