DOGEUSD finds buyers again around 0.002587
Doge/US Dollar Index (DOGEUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
DOGEUSD finished the week -2.3% lower at 0.002587 after edging lower $0.000011 (-0.42%) today. Trading $0.000119 higher after the open, DOGE/USD was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, DOGEUSD actually gained 2.36% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DOGEUSD as at Oct 23, 2020):
Friday's trading range has been $0.000130 (5.0%), that's slightly below the last trading month's daily average range of $0.000152. 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.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Shooting Star.
Prices are trading close to the key technical support level at 0.002532 (S1). Unable to break through the key technical resistance level at 0.002703 (R1), Doge closed below it after spiking up to 0.002717 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 0.002563 in the previous session, the cryptocurrency found buyers again around the same price level today at 0.002587.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 0.002492 where further sell stops might get triggered. As prices are trading close to October's high at 0.002825, upside momentum could accelerate should the market mark new highs for the month. Further selling might move prices lower should the market test September's close-by low at 0.002457.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for DOGE/USD. Out of 529 times, DOGEUSD closed higher 55.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.74% with an average market move of 16.46%.