Dogecoin DOGE/USD and Ethereum Classic ETC/USD have been trading in unison recently, with each following the price movements of Bitcoin BTC/USD more closely than Ethereum ETH/USD.
On Thursday, each of the crypto’s were working to print a bullish engulfing candlestick on their daily charts, with Dogecoin and Ethereum Classic shooting up about 5.7% and 5.1% higher, respectively.
The move higher could bode well for bullish traders over the holiday weekend because Dogecoin and Ethereum Classic have now begun to show signs of a reversal to the upside, albeit slightly differently.
It should be noted that events affecting the direction of the general markets can quickly invalidate patterns, especially in the historically volatile crypto sector. As the saying goes, "the trend is your friend until it isn't" and any trader should have a clear stop set in place and manage their risk versus reward.
In The News: Block Inc SQ co-founder and CEO Jack Dorsey, Dogecoin co-founder Billy Markus and Tesla Inc TSLA CEO Elon Musk took to Twitter Inc TWTR to weigh in on how some cryptocurrencies relate to the corporate establishment and Web3.
The debate began when Dorsey, a well-known Bitcoin proponent and co-founder of Twitter, responded to tweets about Ethereum to say “If your goal is anti-establishment, I promise you it isn’t Ethereum.” Markus used the opportunity to take a dig at Bitcoin and responded the crypto “just gives power to new rich people.” Musk said that’s why he’s “pro Doge.”
Regardless of who prefers different cryptos for different reasons, Dogecoin and Ethereum Classic are both developing patterns that could provide the opportunity for far more upside this holiday weekend.
- On Thursday afternoon, Dogecoin was attempting to break up over the Dec. 16 high of $0.185. The crypto may need to print a higher low above $0.161 before gaining enough strength to pop over the level.
- The higher low will be needed to confirm that Dogecoin has reversed into an uptrend.
- Dogecoin has resistance above the 18.5-cent level at $0.196 and $0.211 and support below at 16 cents and the 13-cent mark.
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The Ethereum Classic Chart: Ethereum Classic confirmed on Thursday it has reversed into an uptrend by printing a higher high above the Dec. 19 high of $36.40.
- Like Dogecoin, Ethereum Classic will eventually need to print another higher low, which may give bullish traders an opportunity to buy the dip.
- Ethereum Classic may struggle near the $38 level because that is where the 21-day simple moving average is currently trending.
- The crypto has resistance above the level at $40.57 and $44.66 with support below at $32.17 and $27.67.
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