Dogecoin (DOGE) rose 15.3% from March 22 to March 24 after breaking out of a bull flag formation, then fell more than 5% at one point on Friday. Meme coin is now developing an inside bar pattern on the daily chart. This pattern indicates a period of consolidation and usually follows a continuation in the direction of the current trend.
Why does Dogecoin look ready for a big weekend run?
Bulls want to look for inside bar patterns in uptrend cryptos. Some traders may take positions on the inside bar before the breakout, while other aggressive traders may take positions after the pattern is broken. For bears, finding an inside bar pattern on a bearish crypto could be key. Like bull traders, bears have two options for where to take a position to play the breakout of the pattern. For the bears, the pattern is invalidated if the crypto rises above the high range of the main candle.
As Dogecoin hit lows on Friday, it did not lose Thursday’s support, which created an inside bar pattern. Investors can follow Dogecoin’s association with the pattern to gauge future direction. On Friday, when Dogecoin slumped to the low of the day at $0.127, buyers bought the dip, causing DOGE to rise from the zone. The bottom formed was above the previous high formed on March 20 at $0.117, which indicates that the next low in the uptrend has now been captured and the Doge could trade higher over the weekend.
Which levels should be followed?
If Dogecoin closes the 24-hour trading session above $0.13, it will create a hammer pattern, suggesting higher prices could come over the weekend. Dogecoin is trading above the eight-day and 21-day exponential moving averages (EMA), with the eight-day EMA trending above 21 days, both of which are bullish indicators. DOGE is also holding above support at the 50-day simple moving average, indicating that long-term sentiment is bullish. You can reach Dogecoin technical analysis, which we prepared as Kriptokoin.com, here.
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