Dogecoin price in process of creating bear trap as DOGE primed for 5% intraday uptick

Dogecoin (DOGE) price was on the descent together with Bitcoin and other major pairs on Wednesday. This morning's turnaround in the ASIA PAC session is being noticed across the board with the Relative Strength Index (RSI) performing a knee-jerk reaction. As bulls have pierced through the defence of the 55-day Simple Moving Average (SMA), expect to see continuation once the US trading session takes over with DOGE moving 5% higher near $0.084.

Dogecoin price to pull the bear trap

Dogecoin price saw a knee-jerk reaction in both the RSI and in its price action this morning as bulls decided that enough is enough. With a 2.5% profitable candle, the descent from Wednesday got erased, and the 55-day SMA, which was hanging as a cap over the price action, got broken to the upside. A few stops will get triggered by bears, who are now trying to re-enter their short positions with the current break below the 55-day SMA again.

DOGE is setting itself up here for a perfect bear trap as the re-entry of those earlier stopped-out bears means that bulls will soon be seen pushing price action above the 55-day SMA. A squeeze will occur next as bears get pushed out of their positions and see DOGE pop up toward $0.084. Expect not much further movement from there as the 200-day SMA has already proven to be a big hurdle in the past.

DOGE/USD  4H-chart    

A threat to the downside hangs on a rejection against that 55-day SMA as bulls have refrained from keeping price action above it. In that case, t fade would start to pick up its pace should more altcoins and cryptocurrencies start to join the sell-off. It would mean that this time bulls will get caught in a bull trap and get squeezed out toward $0.076.