Dogecoin Perks Up To CPI Data But Lacks Celebrity Praise: What's Up With The Crypto?

Zinger Key Points
  • Dogecoin attempted to break up from a symmetrical triangle but is stuck in a sideways pattern.
  • Bullish traders want to see trading volume increase as summer comes to an end.

Dogecoin DOGE/USD was trading about 3% higher during Thursday’s 24-hour trading session in tandem with Bitcoin BTC/USD and Ethereum ETH/USD, which were trading about 3.6% and 3.8%, respectively.

The cryptocurrency sector, like the general market, is receiving bullish momentum after reacting positively to consumer price index data released on Wednesday, showing inflation may have peaked. The news has traders and investors hopeful the Federal Reserve may ease off hiking interest rates by an addition 0.75% in September, after raising rates by that amount in both June and July.

Positive sentiment may also be returning to the markets as summer comes to an end and traders and investors anticipate higher trading volumes across all sectors as more market participants return from their stock market vacations.

Dogecoin, which once received a massive amount of free advertising from celebrities and influencers, ranging from Kiss bassist Gene Simmons to billionaires Tesla Inc TSLA CEO Elon Musk and Dallas Maverick’s owner Mark Cuban, has fallen from fame over the past many months. An overall uptick in Dogecoin’s trading volume recently, however, may indicate positive sentiment is returning to the crypto, which could eventually release Dogecoin from the dog house and bring back its celebrated status.

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The Dogecoin Chart: Dogecoin has been trading mostly sideways between about 5 cents and the $0.075 mark since June 9. Starting on June 18, the crypto has been finding support at an ascending trendline on the daily chart, which has helped Dogecoin to make a fairly consistent series of higher lows, although the crypto isn’t trading in a true uptrend due to a lack of higher highs.

  • During Thursday’s trading session, Dogecoin was able to pop up above the most recent high of $0.074, which indicates a new uptrend may begin. The price action may also have confirmed a break up from a symmetrical triangle, which could indicate a larger move to the upside is on the horizon but traders will want to see increasing volume come in later on Thursday for confirmation.
  • Ideally, bullish traders and investors want to see Dogecoin break up over the $0.075 level, which is acting as heavy resistance. The crypto has room to pop up above the level because Dogecoin’s relative strength index is not yet extended, measuring in at about 59%.
  • Bearish traders want to see Dogecoin continue to reject the $0.075 level, which could cause the crypto to pull back under the upper descending trendline of the triangle. If that happens, the trendline could continue to push the crypto lower.
  • Dogecoin has resistance above $0.075 at $0.083 and just under the 10-cent level. There is support below at $0.065 and $0.057.

Photo: Shutterstock

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