Dogecoin (CRYPTO: DOGE) was trading about 2.41% higher on Wednesday afternoon following Bitcoin (CRYPTO: BTC), which was trading back up over a support and resistance level at the $39,489 mark. Bitcoin could be breaking up from a daily bull flag pattern, charted by Benzinga on Monday, which would, in turn, be bullish for Dogecoin.
Dogecoin bulls and bears may be waiting to see the final text of the infrastructure bill which could negatively affect the crypto space if it includes forcing brokers to report to the IRS. On Wednesday, Sen. Durbin (D-Illinois) said he expects the bill to pass the Senate this weekend or Monday.
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The Dogecoin Chart: The wildly popular Shiba Inu-themed cryptocurrency has been hovering around the 20-cent mark since July 21 when it broke up bullishly from a descending trendline that had been holding it down since June 4.
Although Dogecoin remains a top trending cryptocurrency on Twitter, the crypto hasn’t been given much attention in the form of buyers or sellers recently. On Wednesday afternoon Dogecoin’s volume stood at just 1.67 million compared to its 10-day average of 8.70 million.
Despite the lack of volume, Doge continues to ride up the 200-day simple moving average (SMA), which indicates overall sentiment in the crypto is bullish. Dogecoin is trading in line with the eight-day exponential average (EMA) but slightly below the 21-day EMA, which indicates bearish indecision. On Wednesday the eight-day and 21-day EMAs were acting as resistance.
- Bulls want to see Dogecoin paw its way up above the EMAs and close above the 20-cent level. If it can regain the levels as support, it has room to move up toward the 23-cent mark.
- Bears want to see Dogecoin drop below the 200-day SMA, which would put it into bearish territory. If the crypto falls below the level, there is some weaker newly created support at the 19-cent level. Below 19 cents Dogecoin could retrace to the 16-cent mark.