Benzinga asked its Twitter followers on Thursday evening what they’re buying at the open on Friday. From the replies, Benzinga selected one ticker for technical analysis.
@Shafiusani20 is buying BabyDoge.
BabyDoge, which refers to Dogecoin as its crypto father, was trading down almost 8 percent lower on Friday in sympathy with Dogecoin, which was also trading down about 8 percent. Both Shiba Inu-themed cryptos are affected by the cryptocurrency markets as well as the general markets, which were plunging due to the emergence of a new strain of the COVID-19 in South Africa.
BabyDoge was showing some obedience by holding a key support level at $0.000000001869, and if the crypto can end the 24-hour session flat or higher-than-opening price, it could be in for at least a bounce.
BabyDoge hit a high of $0.000000005220 on Oct. 30 and then retraced and traded sideways for about 14 trading sessions. On Nov. 18, the crypto entered into a downtrend making consistent lower highs and lower lows on the daily chart, with the most recent lower high printed at $0.000000002589.
If BabyDoge can close the trading session flat it will print a doji candle and if it closes the session near its high-of-day it will print a hammer candlestick. Both candlesticks could indicate higher prices are on the horizon, although Saturday’s candlestick will be needed to print for confirmation. If BabyDoge closes the candle near its low-of-day it could indicate the key support level below is about to be lost.
BabyDoge is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is also trading below the 50-day simple moving average, which indicates longer term-sentiment is bearish.
Bulls want to see BabyDoge hold above the key trendline and then for big bullish volume to come in and push the crypto up to make a higher high above $0.00000002589. There is resistance above at $0.000000002185 and $0.000000002499.
Bears want to see big bearish volume come in and break BabyDoge down below the key support level. Below the area, there is further support at $0.000000001623 and $0.000000001300.
By Melanie Schaffer
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