DOGEUSD closes higher for the 2nd day in a row
Doge/US Dollar Index (DOGEUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DOGEUSD finished Saturday at 0.002615 edging higher $0.000010 (0.38%). Trading up to $0.000104 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DOGEUSD as at Oct 17, 2020):
Saturday's trading range has been $0.000114 (4.38%), that's below the last trading month's daily average range of $0.000139. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DOGEUSD. Prices continued to consolidate within a tight trading range between 0.002492 and 0.002647 where it has been caught now for the last three trading days.
DOGE/USD managed to close back above the 20-day moving average at 0.002611. After having been unable to move lower than 0.002492 in the previous session, the cryptocurrency found buyers again around the same price level today at 0.002501. The last time this happened on Wednesday, DOGEUSD actually lost -3.69% on the following trading day.
Though Doge is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 0.002770 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 0.002492 where further sell stops could get activated. Further selling might move prices lower should the market test September's nearby low at 0.002457.
Among the 10 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for DOGE/USD. Out of 187 times, DOGEUSD closed lower 60.96% 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 65.78% with an average market move of -6.71%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more