Dogecoin price in process of creating bear trap as DOGE primed for 5% intraday uptick
|- Dogecoin price jumps over 2% in the ASIA PAC session.
- DOGE undergoes a small fade at the start of the European session.
- Expect to see a swing higher when the US session kicks in with the price target for Thursday set at $0.084.
Dogecoin (DOGE) price was on the descent together with Bitcoin and other major pairs on Wednesday. This morning's turnaround in the ASIA PAC session is being noticed across the board with the Relative Strength Index (RSI) performing a knee-jerk reaction. As bulls have pierced through the defence of the 55-day Simple Moving Average (SMA), expect to see continuation once the US trading session takes over with DOGE moving 5% higher near $0.084.
Dogecoin price to pull the bear trap
Dogecoin price saw a knee-jerk reaction in both the RSI and in its price action this morning as bulls decided that enough is enough. With a 2.5% profitable candle, the descent from Wednesday got erased, and the 55-day SMA, which was hanging as a cap over the price action, got broken to the upside. A few stops will get triggered by bears, who are now trying to re-enter their short positions with the current break below the 55-day SMA again.
DOGE is setting itself up here for a perfect bear trap as the re-entry of those earlier stopped-out bears means that bulls will soon be seen pushing price action above the 55-day SMA. A squeeze will occur next as bears get pushed out of their positions and see DOGE pop up toward $0.084. Expect not much further movement from there as the 200-day SMA has already proven to be a big hurdle in the past.
DOGE/USD 4H-chart
A threat to the downside hangs on a rejection against that 55-day SMA as bulls have refrained from keeping price action above it. In that case, t fade would start to pick up its pace should more altcoins and cryptocurrencies start to join the sell-off. It would mean that this time bulls will get caught in a bull trap and get squeezed out toward $0.076.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.