Dogecoin (CRYPTO: DOGE) was showing comparative strength to much of the crypto sector during Friday’s 24-hour trading session.
On Friday afternoon, the Shiba Inu-based cryptocurrency was spiking up over 4% higher at one point while Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) were declining about 4% and 3%, respectively.
Despite the drop in the two apex cryptos, the sector has shown strength compared to the general markets since the Federal Reserve hiked interest rates by 0.75% on Wednesday.
The S&P 500, which was trading down about 2.7% Friday afternoon has plunged 5.6% since the market opened on Wednesday and is due for a bounce. The market will be watching to see how the crypto sector behaves over the weekend for clues as to whether the bounce in the stock market is in the cards for Monday.
Here’s a look at the three cryptocurrencies heading into the weekend.
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The Bitcoin Chart: Bitcoin has been trading in a sideways sequence since Sept. 19, almost forming a quadruple inside bar pattern, except for the brief drop below Monday’s lower range on Wednesday.
- The inside bar pattern is neutral because Bitcoin is not showing any clear trend direction. Traders can watch for the crypto to break up or down from Monday’s mother bar 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: Similar to Bitcoin, Ethereum was working 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 watch for the crypto to break up or down from the mother bar on higher-than-average volume, which will likely coincide with Bitcoin’s break from its inside bar pattern.
- A bounce is likely to occur soon because Ethereum’s relative strength index (RSI) is measuring in at about 36%. When a stock or crypto’s RSI nears 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 up bullishly from an inside bar pattern on Friday, which confirmed the crypto is trading in an uptrend. Dogecoin’s most recent higher low was formed on Sept. 21 at $0.056 and when the crypto began to surge higher on Friday a higher high above 6 cents printed.
- If Dogecoin is currently acting as an indicator for the crypto sector, Bitcoin and Ethereum are more likely to break up bullishly from their inside 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 negate the current uptrend.
- Dogecoin has resistance above at $0.065 and $0.075 and support below at $0.057 and the 5-cent mark.
Photo: BBbirdZ via Shutterstock
