Baby Doge Coin BABYDOGE/USD spiked up about 1.6% higher during Thursday’s 24-hour trading session after announcing via its official Twitter account that the crypto is now available for trading on BingX.
The crypto’s pop higher was also in tandem with the general crypto sector, which saw Bitcoin (CRYPTO: BTC0 and Ethereum (CRYPTO: ETH) climbing over 2% and 4%, respectively, during the 24-hour trading period.
Baby Doge Coin’s break higher wasn’t enough to burst the stock up from a descending channel pattern, which has dominated the crypto since Dec. 1. The pattern is bearish for the short term but can be bullish down the road.
For bearish traders, the “trend is your friend” (until it’s not) and the stock or crypto is likely to continue downwards. Aggressive traders may decide to short the stock or crypto at the upper trendline and exit the trade at the lower trendline.
Bullish traders will want to watch for a break up from the upper descending trendline, on high volume, for an entry. When a stock or crypto breaks up from a descending channel, it’s a powerful reversal signal and indicates a rally is likely in the cards.
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The Baby Doge Coin Chart: Baby Doge Coin has been trading in a fairly consistent downtrend within a falling channel pattern, making a series of even highs and lower lows. The most recent high was formed on Dec. 5 at $1.07e-9 and the most recent confirmed low was printed at $1.01e-9 on Dec. 2.
Baby Doge Coin’s trading volume has been decreasing since Nov. 9, which indicates the crypto may be running out of sellers. Decreasing volume is often followed by an influx of volume, which could cause the crypto to break from the channel pattern.
During Wednesday’s and Thursday’s 24-hour trading sessions, Baby Doge Coin bounced up from $0.992e-9, which caused a bullish double-bottom pattern to form. If the pattern is recognized, Baby Dogecoin is likely to break up from the channel imminently and form a reversal to the upside. If Baby Doge Coin trades under the level, the pattern will be negated and a larger downtrend may form.
Baby Doge Coin has resistance above at $1.042e-9 and $1.135e-9 and support below at $0.992e-9 and $0.87e-9.
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This article has been originally published at: https://www.benzinga.com/markets/cryptocurrency/22/12/30013663/a-look-at-baby-doge-coin-as-the-crypto-prepares-to-break-this-pattern?SNAPI