As Dogecoin Fights This Bellwether Indicator Here’s A Look At What’s Next By Benzinga

The bears briefly dropped the crypto under the important level on Monday afternoon, but bulls came in and bought the dip.

The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, whereas a stock trading under the 200-day SMA is considered to be in a bear cycle.

The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs, whereas when the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.

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The Dogecoin Chart: A stock or crypto is unlikely to bust up through or break down under the 200-day SMA on the first try, but the more times the area is tested, the weaker it becomes. Bullish traders will want to see Dogecoin close above the level, with a lower wick, which could indicate a bounce is on the horizon for Tuesday.

• If Dogecoin closes under the 200-day SMA, the stock will also print a bearish Marubozu candlestick, which could indicate lower prices are on the horizon. If that happens, the 200-day SMA is likely to act as heavy resistance on the next bounce.
• A golden cross formed on Dogecoin’s chart on Nov. 11, which indicated a bull cycle could be on the horizon. If Dogecoin falls under the 200-day SMA, a death cross is likely to eventually form, which could indicate a bear cycle is in play.
• Dogecoin has resistance above at $0.075 and $0.083 and support below at $0.065 and at 6 cents.

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