The cryptocurrency gained a lot of new utility here on Earth in 2021, however, and if Dogecoin continues to be adopted as payment for goods and services in the year ahead, its price could be bolstered as a result.

Dogecoin is currently bogged down by the price of apex cryptocurrency Bitcoin (CRYPTO: BTC), which Dogecoin tends to trade in tandem with. On Monday, Bitcoin was trading down almost 2% lower while Dogecoin followed, losing almost 3% of its value by midafternoon.

For now, at least, Dogecoin and other crypto should continue to adhere to their chart patterns as algorithms and bots remain active in the sector just as they are in the stock market.

See Also: If You Invested $1,000 In Bitcoin, Dogecoin And Ethereum At The Start Of 2021, Here's How Much You'd Have Today

The Dogecoin Chart: On Monday, Dogecoin was trying to hold above the lower ascending trendline of a rising channel pattern. The rising channel, when paired with the downward pole that was formed between Dec. 27 and Dec. 29, may have settled Dogecoin into a bear flag pattern on the daily chart.

If the bear flag is recognized, the measured move of the pattern is about 13%, which indicates Dogecoin could retrace further toward the 15-cent level. If Dogecoin breaks down from the rising channel (or flag), traders will want to watch for increasing bearish volume to confirm the pattern was recognized.

On Sunday, Dogecoin may have printed a lower high, which could indicate a downtrend is about to take place. For the trend to be confirmed, Dogecoin will need to drop below the most recent lower high that was printed on Dec. 30 at $0.165.

Dogecoin 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.

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• Bulls want to see Dogecoin hold above the lower trendline of the channel and then for big bullish volume to come in and drive the crypto up over Sunday’s high at $0.176, which would negate the impending downtrend. There is newly created resistance above at that level and at $0.196.
• Bears want to see big bearish volume come in and break Dogecoin down from the bear flag. There is support below at 16 cents and the 13-cent mark.

Related Link: Elon Musk Explains Why Dogecoin Won't Be The 'Official Currency Of Mars'