Dogecoin Barks At Resistance As Bitcoin Breaks Bull

Late Thursday night, Dallas Maverick’s owner and “Shark Tank” host Mark Cuban said on Twitter fans of the basketball team would receive special pricing for merchandise at an upcoming sale if paying with Dogecoin DOGE/USD. He has been a vocal advocate of the cryptocurrency along with Tesla Inc TSLA CEO Elon Musk.

Cuban’s tweet was well received by proponents in the Dogecoin community including the crypto’s co-creator Billy Marcus who responded to thank Cuban for the support. When companies choose to accept a crypto as payment for goods or services it adds utility which, in turn, makes it more valid.

On Aug. 10 Benzinga called out a bull flag pattern on Dogecoin’s chart and on Aug. 11 the crypto broke up bullishly from the pattern. On Friday, Bitcoin BTC/USD looked to be breaking up from a bull flag pattern created between Aug. 4 and 12 which may, in turn, give Dogecoin a boost. 

See Also: Dogecoin Still Headed For $1, Ethereum For $14,000: Crypto Entrepreneur David Gokhshtein

The Dogecoin Chart: After breaking bullishly from the pattern, Dogecoin has consolidated in a sideways pattern stuck under resistance near the 28-cent mark. Dogecoin has tried to break up through the overhead resistance every day for the past three days but has run into sellers who have dropped the crypto back down under support.

The sideways consolidation has helped Dogecoin to cool off its relative strength index (RSI), which reached over 70% on Aug. 7. On Friday afternoon the crypto was nearing the 70% mark again, however. When a stock or crypto's RSI measures in at over 70%, it's considered to be in overbought territory which can be a sell signal for technical traders.

On Friday Dogecoin was printing a bullish Marubozu candlestick, which indicates higher prices may come over the weekend if the crypto can close the day near the 28-cent level. Dogecoin’s Marubozu candle is also within Thursday's trading range, which creates a bullish inside bar pattern.

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. Dogecoin is also trading over 30% above the 200-day simple moving average, which indicates overall sentiment in the crypto is bullish.

• Bulls want to see big bullish volume come into Dogecoin to drive it up and close over the 28-cent mark. If Dogecoin can regain the level as support, it has room to move up to 31 cents.
• Bears want to see Dogecoin continue to reject the overhead resistance and for big bearish volume to come in and drop the crypto down below support at the eight-day EMA. If Dogecoin loses the level as support, it could revisit support at 23 cents. Below that there is another support level at the 20-cent level.