Dogecoin (CRYPTO: DOGE) was trading slightly lower on Wednesday, in sympathy with Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which were sliding about 2% and 3%, respectively.
Both the general market and the cryptocurrency market were awaiting the release of the Federal Reserve’s monthly minutes at 2 p.m. EST for information about how it plans to combat rising inflation.
The cryptocurrency market has recently begun to react bearishly to the Fed’s increasingly hawkish tone, which indicates crypto is not in favor as a safe haven asset.
Although Dogecoin is likely to trade in sympathy with the apex cryptos as they react to the Fed’s decision on Wednesday, Dogecoin has become less volatile lately, trading within a 4-cent range between about $0.135 and $0.174 for the past 22 days.
See Also: What's Going On With Dogecoin Today?
The Dogecoin Chart: Dogecoin reversed course into an uptrend again on Feb. 12, confirmed by one higher low that was printed on Feb. 12 at the $0.142 level. The crypto has not yet made a higher high above the Feb. 13 high of $0.158, however, and bullish traders will want to see that occur soon in order to feel more confident going forward.
On Wednesday, Dogecoin was printing an inside bar on the daily chart, which indicates consolidation. The inside bar in this case leans bullish because the crypto was trading higher before forming the pattern. Traders can watch for a break from Tuesday’s mother bar later on Wednesday or on Thursday in order to gauge future direction.
Dogecoin’s volume on Wednesday confirms that Dogecoin is in a consolidation period because it is far lower-than-average. By midafternoon Dogecoin’s volume stood at about 94.47 million versus the average 10-day volume of 327.76 million.
Dogecoin is trading slightly below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA and 21-day in line with each other, which indicates indecision. The crypto is also trading slightly below the 50-day simple moving average, which indicates longer-term sentiment is bearish.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
- Bulls want to see big bullish volume come in and break Dogecoin up from the inside bar pattern, which will allow the crypto to print a higher high in its uptrend. Dogecoin has resistance above at $0.16 and $0.176.
- Bears want to see big bearish volume come in and drop Dogecoin down from the inside bar pattern, which is likely to cause the crypto to print a lower low and negate the uptrend. There is support below at $0.146 and $0.135.
