DOGEUSD finds buyers at key support level
Doge/US Dollar Index (DOGEUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
DOGEUSD finished Saturday at 0.003561 surging $0.000565 (18.86%). This is the biggest single-day gain in over four months. Today's close at 0.003561 marks the highest recorded closing price since August 17th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 0.003373, Doge confirmed its breakout through the prior session high after trading up to $0.000225 above it intraday.
Daily Candlestick Chart (DOGEUSD as at Nov 21, 2020):
Saturday's trading range has been $0.000672 (22.43%), that's far above the last trading month's daily average range of $0.000229. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DOGEUSD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on November 15th, DOGEUSD gained 5.18% on the following trading day.
After trading down to 0.002926 earlier during the day, the cryptocurrency bounced off the key technical support level at 0.002958 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 0.002886 in the previous session, DOGE/USD found buyers again around the same price level today at 0.002926.
Crossing above the upper Bollinger Band for the first time since Thursday, 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 0.002812 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 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for DOGE/USD. Out of 463 times, DOGEUSD closed lower 61.34% 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 three trading days, showing a win rate of 64.15% with an average market move of -0.81%.