Will Dogecoin be able to join in on the crypto rally? Yesterday, I discussed and gave a technical breakdown of Shiba Inu. XRP has also been one of our top winners, giving readers and discord members the heads up last week before the range breakout.
Crypto’s are pulling back across the board, but this could just be the set up for a higher low…or if you are overly bearish… all of this has just been a bull trap.
The big move in crypto’s was attributed to KPMG adding crypto’s to their balance sheet. The allocation includes Bitcoin (BTC) and Ethereum (ETH), as well as carbon offsets to maintain a net-zero carbon transaction to deliver on the firm’s stated environmental, social and governance (ESG) commitments.
“Cryptoassets are a maturing asset class,” says Benjie Thomas, Canadian Managing Partner, Advisory Services, KPMG in Canada. “Investors such as hedge funds and family offices to large insurers and pension funds are increasingly gaining exposure to cryptoassets, and traditional financial services such as banks, financial advisors and brokerages are exploring offering products and services involving cryptoassets. This investment reflects our belief that institutional adoption of cryptoassets and blockchain technology will continue to grow and become a regular part of the asset mix,” he added.
“We’ve invested in a strong cryptoassets practice and we will continue to enhance and build on our capabilities across Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs) and the Metaverse, to name a few. We expect to see a lot of growth in these areas in the years to come,” he added.
Mainstream adoption. Bullish if more corporations get involved. Some say that Biden executive orders would be bearish for crypto’s. On the contrary, I think it would be bullish because regulations likely means depositor insurance becomes a reality. Which means more banks, funds and corporations will feel safer buying and hodling crypto’s. The hardcore crypto fans will hate this as Bitcoin and other crypto’s were meant to be away from the hands of big government, big corporations and the big banks.
Very interesting times for crypto’s here, and as previously mentioned, the technicals confirm a new uptrend as we take out ranges and previous lower highs. The question going forward is if buyers step in on a pullback to create a higher low and continue the uptrend. Or if all of this is a fake out and a bull trap.
Dogecoin is the premier meme coin. Some love it. Some hate it. But for us traders, as long as it can be traded and make us money it is good in our books. Especially if we have a decent set up.
Dogecoin is actually being used now as money. You can use it to buy items from the Tesla store, and also from the Dallas Mavericks. Elon Musk and Mark Cuban are fans.
In fact, Elon Musk is apparently excited this crypto rally after commenting, and resurfacing a legendary image in the last 22 hours:
The Dogecoin chart has my attention. First off, let’s start with a simple technical breakout. The trendline. My downtrend line connecting the lower highs from November 2021 to 2022 has been breached. We broke above it yesterday on February 7th 2022. Today’s pullback is taking us back to retest the breakout. We could very well see buyers enter here.
Secondly, I want to highlight the overall market structure. Dogecoin has been in a long downtrend. We do expect a reversal at some point. Those with a technical eye, can see the pattern that I have drawn out with my arrows. Yes, I would love to see an inverse head and shoulders pattern here. The structure is there, and we already have a left shoulder and the head.
I would love to see the price pop up and retest resistance at $0.19 before pulling back and forming the right shoulder. Once that is created, we then rip up and take out $0.19 confirming an inverse head and shoulders reversal pattern. And the beginning of a new uptrend with multiple higher lows and higher highs.
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