Dogecoin (CRYPTO: DOGE) was bouncing up slightly from its $0.1272 low-of-day by late afternoon on Monday, as the crypto was trading at $0.1376 up a slight 0.04% over Sunday’s closing price.
The bounce up was in tandem with apex cryptocurrencies Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which were popping up from their lows due to a relief bounce in the general markets that saw the SPDR S&P 500 (NYSE:SPY) close up about 4.5% from its low-of-day price.
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While the general markets may see a massive ramp higher on Tuesday, Dogecoin’s bounce, however, may be the crypto settling into a bear flag pattern on the daily chart. If that pattern is recognized, the crypto could retrace under 10 cents.
The Dogecoin Chart: Dogecoin’s possible bear flag was created between Jan. 16 and Monday, with the pole printed between that date and Jan. 22 and the flag formed on the days that have followed.
- The measured move of the pattern is about 34%, which indicates Dogecoin could fall toward $0.094.
- The crypto is trading in a downtrend trajectory, with the most recent lower high printed on Saturday at the $0.144 mark and the most recent lower low created on Sunday at $0.135. If the trend continues, Dogecoin is likely to print another lower low over the coming days.
- In order to negate the bear flag, Dogecoin will have to reclaim the eight-day exponential moving average on the daily chart.
- There is resistance above at 16 cents and the $0.176 mark, and support below at $0.135 and the 12 cent area.
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Photo: Courtesy of CryptoWallet.com Images on Flickr