Bitcoin and many altcoins have suffered short-term price losses recently. Furthermore, many are experiencing bullish divergence. On the contrary, Dogecoin (DOGE) and Basic Attention Token (BAT) recently broke out from their respective patterns.
Will they be able to defy the odds and continue rising?
In order to answer this question, we analyze the current short and medium-term movements of DOGE/BTC and BAT/BTC alongside an assessment of their technical indicators. In conclusion, we summarize our findings and compare both cryptocurrencies to see which has more potential for higher prices in the future.
You can read our previous BAT and DOGE analysis HERE!.
A Breakout for Dogecoin (DOGE)
On Apr 9, the price of DOGE made a low of 52 satoshis. Over the next few days, the price gradually rose. A high of 58 satoshis was reached on Apr 18.
Since then, the price has been decreasing inside the descending wedge outlined below:
The price broke out from this wedge on May 16. While this breakout may have been legitimate, DOGE could also fall back into the trading pattern and start falling again.
To determine, which is more likely, the price of DOGE is analyzed at six-hour intervals alongside volume and the 100- and 200-period moving averages below:
Firstly, the breakout occurred with above-average but not extreme volume. Furthermore, as soon as the price reached the 100-period MA, it began a swift reversal. A very long upper wick emerged. In addition, a bearish cross emerged when the 100-period MA crossed below the 200-period one on Apr 30.
All of these indicators suggest future price losses. It appears that the breakout may have been false. If so, DOGE should soon drop below the resistance line.