Dogecoin Shows Strength Compared To Bitcoin And Ethereum, Looks To Confirm New Trend

Dogecoin DOGE/USD was popping up about 3% on Tuesday, attempting to break up from a double inside bar pattern on the daily chart.

The Shiba Inu-themed crypto was showing strength compared to Bitcoin and Ethereum, which were trading slightly lower in consolidation following bullish days on Monday.

If the crypto can break up from the mother bar, which was formed on July 1, Dogecoin will confirm a new uptrend. An uptrend occurs when a stock consistently makes a series of higher highs and higher lows on the chart.

The higher highs indicate the bulls are in control while the intermittent higher lows indicate consolidation periods.

Traders can use moving averages to help identify an uptrend, with rising lower time frame moving averages (such as the eight-day or 21-day exponential moving averages) indicating the stock is in a steep shorter-term uptrend.

Rising longer-term moving averages (such as the 200-day simple moving average) indicate a long-term uptrend.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Dogecoin Chart: Dogecoin negated its downtrend on Saturday. The crypto printed a higher high at the $0.071 mark, which was above the most recent lower high formed on June 28 at $0.065.

If Dogecoin can break above $0.072, Sunday’s low-of-day will serve as a higher low and an uptrend will be confirmed.

Dogecoin is also trading in a double inside bar pattern, with the price history of the last three 24-hour trading sessions taking place within Saturday’s trading range. The pattern leans bullish in this case, because Dogecoin was trading higher before forming the pattern.

• On Saturday, Dogecoin also broke up through a descending trend line, which had been holding the crypto down since June 22.
• Bullish traders want to see Dogecoin continue to hold the area as support. Bearish traders want to see big bearish volume come in and knock the crypto down under the area.
• Dogecoin has resistance above at $0.075 and $0.083 and support below at $0.069 and $0.065.