Baby Doge Coin BABYDOGE/USD celebrated its first birthday on Wednesday but didn’t offer its traders and investors any party favors, closing the 24-hour trading session lower.
The crypto has seen increased volatility over the past few days after breaking up bullishly from a triangle pattern on the daily chart on Monday, and on Thursday Baby Doge Coin was consolidating with an inside bar pattern.
An inside bar is usually followed by a continuation move in the direction of the current trend.
An inside bar pattern has more validity on larger time frames (four-hour chart or larger). The pattern has a minimum of two candlesticks and consists of a mother bar (the first candlestick in the pattern) followed by one or more subsequent candles. The subsequent candle(s) must be completely inside the range of the mother bar and each is called an inside bar.
A double, or triple inside bar can be more powerful than a single inside bar. After the break of an inside bar pattern, traders want to watch for high volume for confirmation the pattern was recognized.
- Bullish traders will want to search for inside bar patterns on stocks that are in an uptrend. Some traders may take a position during the inside bar prior to the break while other aggressive traders will take a position after the break of the pattern.
- For bearish traders, finding an inside bar pattern on a stock that’s in a downtrend will be key. Like bullish traders, bears have two options of where to take a position to play the break of the pattern. For bearish traders, the pattern is invalidated if the stock rises above the highest range of the mother candle.
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The Baby Doge Coin Chart: Baby Doge Coin’s inside bar is neutral because there isn’t a clear uptrend developed on the crypto’s chart. Traders and investors can watch for a break up or down from Wednesday’s mother bar on higher-than-average volume to occur later on Thursday or on Friday to gauge the future direction.
- The crypto negated a horizontal trading pattern when it broke up from the triangle pattern by printing a higher high above the May 27 lower high of $0.000000001641. If Baby Doge Coin breaks bullishly from the inside bar pattern, Wednesday’s low-of-day may serve as a higher low and if the crypto can then rise up above $0.000000002105, an uptrend will confirm.
- Baby Doge Coin was trading on far-below-average volume on Thursday, which indicates there is a current lack of interest in the crypto. At press time, Baby Dogecoin’s volume was measuring at about 70 trillion on OKEX, compared to the 10-day average of 1412.27 trillion.
- The crypto is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. If Baby Doge Coin breaks up from the inside bar pattern, it will regain the 50-day simple moving average as support, which would give bullish traders more confidence going forward.
- Baby Doge Coin has resistance above at $0.000000002161 and $0.000000002855 and support below at $0.000000001600 and $0.000000001330.
See Also: How to Read Candlestick Charts for Beginners
Read More:As Baby Doge Coin Enters 2nd Year, Here’s What The Crypto Has In Store – Benzinga