Dogecoin (CRYPTO: DOGE) was trotting on shaky ground on Wednesday morning, testing a critical support level at $0.165 after breaking down from a bear flag pattern Benzinga called out on Monday.
Dogecoin co-creator Billy Markus, who often complains about the social media battles between enthusiasts of different cryptocurrencies, took to Twitter Inc (NYSE:TWTR) to respond to Mozilla Twitter followers who voiced their displeasure when the developer and nonprofit company behind Firefox announced on Dec. 31 it would begin welcoming donations in cryptocurrency.
“Reading the comments in this thread, as much as I rag on crypto bros being counterproductive at marketing, the vitriolic, hateful, hyperbolic, hypocritical, sanctimonious whining coming from the anti-crypto people is 1000x more insufferable than the pro-crypto people,” Markus wrote.
Dogecoin is considered to be more environmentally friendly than Bitcoin, which requires immense amounts of fossil fuels for mining and transactions. Dogecoin, in comparison, is relatively quick and easy to mine, which uses far less electricity.
The contrasting environmental impact of the two coins hasn’t allowed Dogecoin and Bitcoin to decouple from one another and by midafternoon Dogecoin dug through the $0.165 floor and tumbled almost 8% lower before bouncing back up slightly.
See Also: Dogecoin May Be Down Today But 1 Popular Backer Says It Could Rise Higher Again Just Like NFTs
The Dogecoin Chart: When Dogecoin lost the critical support level and fell to $0.155, the cryptocurrency completed the measured move of the bearish break of the bear flag pattern. When there was no bearish follow through to drop Dogecoin even further, bulls came in and bought the dip to prop the crypto back up over 16 cents.
The lower wick confirms Dogecoin is trading in a downtrend. with Wednesday’s low-of-day marking the lower low. For Dogecoin to negate the trend over the next few trading days, it will have to pop up over the $0.176 mark, otherwise, traders can watch for the crypto to bounce up just enough to print another lower high.
The bearish break was made on higher-than-average volume, which indicates the bears are in control of Dogecoin. By midafternoon, Dogecoin’s volume was measuring in at over 172 million compared to the 10-day average of 158.32 million.
Dogecoin is trading below the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is also trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.
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- Bulls want to see Dogecoin trade sideways in consolidation above the 16-cent level and then for big bullish volume to come in and push the crypto back up above $0.165, which would give Dogecoin another attempt at regaining the eight-day EMA. There is resistance above at $0.176 and $0.196.
- Bears want to see big bearish volume continue to drop Dogecoin down to close below 16 cents, which would then make the area heavy resistance. Dogecoin has support below at 13 cents and the 10-cent level.
Photo: Executium via Unsplash
