Dogecoin DOGE/USD was trading almost 3% higher on Friday in a very tight trading range between $0.054 and $0.058.
The crypto has experienced high volatility recently, whipsawing up over 24% on Wednesday only to plunge about 12% on Thursday. On Friday, Dogecoin was consolidating on lower-than-average volume and settling into a double inside bar pattern on the daily chart.
An inside bar pattern indicates a period of consolidation and 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.
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The Dogecoin Chart: Both Thursday and Friday’s price action were taking place within Wednesday’s range, setting Dogecoin into the double inside bar pattern. Although the pattern leans slightly bearish because Friday’s inside bar is printing near the bottom of Thursday’s range, the crypto has fairly strong support at the 5-cent mark after testing the area on Tuesday and Wednesday and wicking up from the level.
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