Is It Time To Take These Two Underdog Cryptocurrencies More Seriously?

Dogecoin DOGE/USD and XRP XRP/USD were both underdogs in the cryptocurrency space, with Dogecoin repeatedly branded as a joke and Ripple caught up in court.

The price action of the two coins recently has made some traders sit up and take a more serious look. Although both Dogecoin and Ripple surged when Bitcoin BTC/USD hit a new all-time high on April 14, the two cryptocurrencies haven’t retreated more than what would be expected for any blue-chip stock on the Nasdaq 100.

After hitting all-time highs in recent weeks, Dogecoin and Ripple have set up respectable charts in their consolidation.

The Dogecoin Chart: Although Dogecoin is down almost 40% from the all-time high of 45 cents it made on April 16, it's still up 340% from April 1.

Dogecoin has spent the last five days consolidating between a support level at $0.249 and a resistance level at $0.289. It's trading above the eight-day exponential moving average (EMA) and 22% above the 21-day EMA, with the eight-day EMA trending above the 21-day EMA which is bullish.

Related Link: Dogecoin Co-Creator Says Meme Crypto Has Been 'One Of The Most Secure Coins' For Years

On April 23, when the coin suffered a large pullback to the 15-cent level, it printed a red hammer candlestick on the daily chart with a long lower wick showing the dip in price was immediately bought up by bulls.

Bulls want to see bullish volume come into Dogecoin to pop it over resistance near the 29-cent mark. If Dogecoin can clear that level, it has room to move up to 35 cents before meeting another resistance level.

Bears want to see Dogecoin lose the eight-day EMA as support and fall below its support near 25 cents. If it loses that level as support, it could revisit the 15-cent mark.

The Ripple Chart: On Tuesday, XRP tested overhead resistance at $1.47 and wicked off it. Similar to Dogecoin, XRP is down 30% from the three-year high of $1.96 it made on April 14 but is up 130% from the beginning of the month.

XRP is trading above both the eight-day and 21-day EMAs and on Tuesday both EMAs began to curl upwards, which is bullish.

See also: How to Buy Ripple (XRP)

Bulls want to see XRP jump over resistance at $1.47, which would give it room to run back towards its new highs.

Bears want to see XRP drop down and lose support at $1.15. If XRP is unable to hold support at that level, it could revisit the 91-cent mark.