Dogecoin (CRYPTO: DOGE) was trading slightly higher on Thursday afternoon after shooting up over 8% higher earlier in the 24-hour trading session. The crypto was showing comparative strength to apex cryptos Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), which were trading down about 3% each.
Dogecoin was wildly popular in 2021 partly due to a number of popular personalities who have rallied around the cryptocurrency such as Tesla, Inc (NASDAQ:TSLA) CEO Elon Musk and billionaire entrepreneur and Dallas Mavericks owner Mark Cuban.
The popularity of the crypto also cast new voices into the social media spotlight with Dogecoin co-creator Billy Markus increasing his followers on Twitter from just 9,000 in January 2021 to about a million today. In comparison, the Dogecoin Developer Twitter page has just over half the number of followers.
Other personalities on Twitter also grew their follower base by showing support for the Dogecoin community such as meme-creator @greg16676935420 who now boasts almost 200,000 followers despite stepping down as “fake” Dogecoin CEO in November.
Dogecoin’s soaring popularity can be attributed to both the crypto’s loyal community and the fact that because of this, Dogecoin has continued to gain utility.
The crypto may be in for a bullish reversal as 2022 gets underway because on Wednesday and Thursday Dogecoin was able to confirm a trend change. If Dogecoin is able to pop up over the 50-day simple moving average (SMA) over the coming days, that trend may be set to continue for the longer-term.
The Dogecoin Chart: On Jan. 10, Dogecoin printed a bullish hammer candlestick after bouncing off the $0.136 level and over the course of the following four days shot up 28% higher. Within the crypto’s rise, Dogecoin confirmed it’s now trading in an uptrend by printing a higher low on Wednesday at $0.151 and a higher high on Thursday above the most recent high of $0.167 printed on Tuesday.
On Thursday, Dogecoin was trading on much higher-than-average volume, which indicates a huge amount of interest has returned to the crypto. By midafternoon Dogecoin’s volume stood at about 530 million compared to the 10-day average of 271.75 million. It is the highest volume Dogecoin has seen since Dec. 14.
Dogecoin is trading above the eight-day exponential moving average (EMA) and in line with the 21-day EMA. If the crypto is able to regain the 21-day EMA as support and trade above it for a period of time the eight-day EMA will cross above the 21-day, which would be bullish. If Dogecoin can complete that task it has a better chance of being able to regain the 20-day SMA.
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- Bulls want to see sustained big bullish volume come in and push Dogecoin up above the 50-day SMA while remembering the cryptocurrency will eventually have to print another higher low within its uptrend pattern. There is resistance above at $0.176 and $0.196.
- Bears want to see big bearish volume come in and drop Dogecoin back down below the eight-day EMA, which could cause the crypto to fall below the most recent higher low and negate the uptrend. There is support below at 16 cents and the 13-cent level.