Bearish Bias Persists Due to Descending Triangle Pattern as Dogecoin Detaches from Bitcoin
Cryptocurrency investors are hopeful that other cryptocurrencies will follow Bitcoin’s recent jump above $30k, but Dogecoin is not showing the same positive movement. The technical and fundamental picture for Dogecoin looks bearish, with strong US data pushing the dollar higher. The US Final GDP was revised higher to 2%, exceeding expectations of 1.4%. This has led to a rise in the dollar and the likelihood of the Fed raising interest rates further.
On the technical side, Dogecoin’s bearish trend continues with a series of lower lows and lower highs. Previous spikes have failed to break above the last lower high, indicating that bears are still in control. Only a move above $0.1 will shift the bias from bearish to bullish. Currently, there is a descending triangle pattern and it is expected that the horizontal support will give way soon.
In summary, the bearish bias for Dogecoin persists and it will take a close above $0.1 for bulls to regain control. Until then, traders can expect to sell any bounce in the cryptocurrency. The strong US data and potential for further rate hikes from the Fed are likely to keep pushing the dollar higher and impacting the overall cryptocurrency market.
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