You Ask, We Analyze: Why BabyDoge Must Hold This Key Level Despite Dogecoin's Action

Benzinga asked its Twitter Inc TWTR followers on Thursday evening what they’re buying at the open on Friday. From the replies, Benzinga selected one ticker for technical analysis.

@Shafiusani20 is buying BabyDoge BABYDOGE/USD.

BabyDoge, which refers to Dogecoin DOGE/USD as its crypto father, was trading down almost 8% lower on Friday in sympathy with Dogecoin, which was also trading down about 8%. Both Shiba Inu-themed cryptos are affected by the cryptocurrency markets as well as the general markets, which were plunging due to the emergence of a new strain of the COVID-19 in South Africa.

BabyDoge was showing some obedience by holding a key support level at $0.000000001869, and if the crypto can end the 24-hour session flat or higher-than-opening price, it could be in for at least a bounce.

See Also: These Dogecoin and Shiba Inu Knockoffs Are Striking Major Gains Today, With One Coin Up 206%

The BabyDoge Chart: BabyDoge hit a high of $0.000000005220 on Oct. 30 and then retraced and traded sideways for about 14 trading sessions. On Nov. 18, the crypto entered into a downtrend making consistent lower highs and lower lows on the daily chart, with the most recent lower high printed at $0.000000002589.

If BabyDoge can close the trading session flat it will print a doji candle and if it closes the session near its high-of-day it will print a hammer candlestick. Both candlesticks could indicate higher prices are on the horizon, although Saturday’s candlestick will be needed to print for confirmation. If BabyDoge closes the candle near its low-of-day it could indicate the key support level below is about to be lost.

BabyDoge is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is also trading below the 50-day simple moving average, which indicates longer term-sentiment is bearish.

• Bulls want to see BabyDoge hold above the key trendline and then for big bullish volume to come in and push the crypto up to make a higher high above $0.00000002589. There is resistance above at $0.000000002185 and $0.000000002499.
• Bears want to see big bearish volume come in and break BabyDoge down below the key support level. Below the area, there is further support at $0.000000001623 and $0.000000001300.

Image: BabyDoge