The market has been consolidating over the past few days with many of the top cryptocurrencies forming Doji candles on their daily charts.
A Doji candle is a candle where the open and the close are around the same time and reflects uncertainty from the side of traders.
Doge is a unique cryptocurrency which tends to move independently from the rest of the market.
Dogecoin has been trading in a range from $0.002 to $0.0023 for over two weeks.
Doge also traded within this range for three weeks in late November and December.
Dogecoin exited the range with a massive spike in price the last time, and it is a strong possibility that Doge could exit the range with a significant move this time also.
This tends to be the case when price consolidates for a prolonged period.
The price of Dogecoin has moved towards the lower end of the range, increasing the likelihood that a break out will be to the downside.
Price has already tested the lower end of the range a number of times.
Any movements outside of the range have moved quickly back inside showing that traders are not yet willing to accept prices outside of the $0.002 to $0.0023 range.
- Market consolidates with top cryptocurrencies forming Doji candles on their daily charts.
- Doge has been trading in an important range from $0.002 to $0.0023 which is also traded in for three weeks from late November to December.
- The last time Doge traded in this range it broke out with a huge spike in price.
- Dogecoin may also break out of the range with a significant move this time given that price has already been trading in the range for two weeks.
- Doge has been testing the lower end of the range, but any move below has quickly reentered the range.