Dogecoin (CRYPTO: DOGE) was trading slightly lower on Wednesday in consolidation after sliding 7.55% during Tuesday’s 24-hour trading session in sympathy with Bitcoin, which shook the cryptocurrency market with a 6.26% drop on that day.
As 2021 comes to a close Dogecoin enthusiasts have had their hopes of an end-of-year $1 price target crushed. But as the crypto continues to gain utility, which is likely to continue in 2022, Dogecoin traders and investors will be watching for $1 predictions to resurface next year.
While Dogecoin is supported by influential personalities such as Tesla, Inc (NASDAQ:TSLA) CEO Elon Musk and American billionaire entrepreneur Mark Cuban for its use case of buying and selling products and services, the crypto has become more than a currency for the community who rallies around it.
The hashtag #DoGoodEveryday has continued to trend across social media this year and the #DogeArmy have, mostly, bound together to use the Shiba Inu-themed crypto to help and support others. Dogecoin has not only become accepted as a payment option at companies such as Tesla and AMC Entertainment Holdings, Inc (NYSE:AMC) but it has also been welcomed by charities and organizations such as MrBeasts’ TeamSeas.
On Wednesday, Dogecoin co-creator Billy Markus took to Twitter to write “if you want to keep the community intact, it has to be about something other than the price of dogecoin” and likened trading the crypto to gambling. For technical traders, there are signs and signals on Dogecoin’s chart, however, that can indicate future direction.
The Dogecoin Chart: Despite falling a total of about 13% over the course of the last four days, Dogecoin has not negated the possible uptrend the crypto may have reversed into after printing a double bottom at the $0.161 level on Dec. 17 and Dec. 20. The most recent high mark was printed at $0.195 on Dec. 25 and for the uptrend to be confirmed, Dogecoin will need to shoot above that level in the near future.
On Wednesday, Dogecoin was printing a doji candlestick on the daily chart, which indicates the higher low may be created. A doji candlestick is often found at the top or bottom of a trend and can indicate a reversal is in the cards. If the pattern is recognized, traders can expect Dogecoin to rise up higher on Thursday.
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 big bullish volume come in on Thursday to push Dogecoin up above the EMAs and then up over a resistance level of $0.196, which will cause the crypto to print a higher high and confirm the uptrend. Above the level, there is further resistance at $0.211 and the 23-cent level.
- Bears want to see big bearish volume come in and drop Dogecoin down below the 16-cent mark, which will indicate a downtrend has begun. Below the area, there is support at 13 cents and the 10-cent mark.
- See Also: Benzinga's Top 5 Articles For 2021 — Or 'Who Let The Dog Out?'