DOGEUSD rallies, gaining $0.000500 (15.6%) within a single day
Doge/US Dollar Index (DOGEUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
DOGEUSD ended Saturday at 0.003706 surging $0.000500 (15.6%). This is the biggest single-day gain in over three weeks. Today's close at 0.003706 marks the highest recorded closing price since July 11th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.003299, Doge confirmed its breakout through the prior session high after trading up to $0.000514 above it intraday.
Daily Candlestick Chart (DOGEUSD as at Aug 01, 2020):
Saturday's trading range has been $0.000614 (19.15%), that's far above the last trading month's daily average range of $0.000321. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for DOGEUSD.
In spite of a weak opening the cryptocurrency managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 20-day moving average at 0.003264 for the first time since July 22nd. When this moving average was crossed above the last time on July 6th, DOGEUSD gained 18.57% on the following trading day. Unable to break through the key technical resistance level at 0.003795 (R1), DOGE/USD closed below it after spiking up to 0.003813 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
Crossing above the upper Bollinger Band for the first time since July 9th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 0.003264 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for DOGE/USD. Out of 183 times, DOGEUSD closed lower 60.11% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 66.12% with an average market move of -6.71%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and ZECBTC closing 14.67% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more