Dogecoin DOGE/USD showed comparative strength to much of the crypto sector during Friday’s 24-hour trading session.
On Friday afternoon, the Shiba Inu-based cryptocurrency soared over 4% higher at one point while Bitcoin BTC/USD and Ethereum ETH/USD decreased by 4% and 3% respectively.
Despite the fall in the two apex cryptos, the sector has shown strength compared to the general markets since then Federal Reserve increased the interest rate by 0.75 percent on Wednesday.
The S&P 500, which traded down approx. 2.7% Friday afternoon, has plunged 5.6% since the market opened on Wednesday and is headed for a bounce. The market will be watching to see how the crypto sector behaves over the weekend for clues as to whether a rally in the stock market is in the cards for Monday.
Here’s a look at the three cryptocurrencies heading into the weekend.
Do you want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Bitcoin Chart: Bitcoin has been trading in a sideways sequence since September 19, almost forming a quadruple inside bar pattern, except for the brief dip below Monday’s lower range on Wednesday.
- The inside bar pattern is neutral because Bitcoin shows no clear trend direction. Traders can look for the crypto to break up or down from Monday’s mother line on higher than average volume to gauge future direction over the weekend.
- Bitcoin has resistance above at $19,915 and $21,313 and support below at $17,580 and $16,000.
The Ethereum chart: Like Bitcoin, Ethereum worked to print a double inside bar pattern on Friday, with all of Thursday and Friday’s price action taking place within Wednesday’s trading range. Traders and investors can look for the crypto to break up or down from the mother line on higher-than-average volume, which is likely to coincide with Bitcoin’s break from the inner bar pattern.
- A bounce is likely to happen soon because Ethereum’s Relative Strength Index (RSI) measures around 36%. When a stock or crypto’s RSI approaches or reaches the 30% level, it becomes oversold, which can be a buy signal for technical traders. Ethereum’s RSI is more oversold than Bitcoin’s.
- Ethereum has resistance above at $1,421.80 and $1,717.41 and support below at $1,245 and $1,081.
The Dogecoin Chart: Dogecoin broke out bullishly from an inside bar pattern on Friday, confirming that the crypto is trading in an uptrend. Dogecoin’s most recent record low was formed on September 21 at $0.056, and as the crypto began to climb higher on Friday, a higher high above 6 cents was printed.
- If Dogecoin is currently serving as an indicator for the crypto sector, Bitcoin and Ethereum are more likely to break out bullishly from their inner bar patterns. If Bitcoin and Ethereum break down from the pattern, bullish Dogecoin traders will want to see the crypto retrace to form another higher low and not cancel out the current uptrend.
- Dogecoin has resistance above at $0.065 and $0.075 and support below at $0.057 and the 5-cent mark.
See also: Dogecoin price increased more than 3% within 24 hours
Photo: BBbirdZ via Shutterstock