Dogecoin DOGE/USD was declining almost 2% during Friday’s 24-hour trading session after soaring up almost 14% between Tuesday and Thursday.
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-120x86.jpg)
The cryptocurrency sector as a whole has struggled since November 2021 amid soaring inflation, rising interest rates and fears of a looming recession. The crypto sector is considered to be high risk and traders and investors are likely deciding to gamble less on “lotto style” trades or to wait for the tides to turn and a new bull cycle to confirm.
On Wednesday, the Federal Reserve raised its target rate by 0.75% after raising rates by the same amount in June. During the press conference that followed the decision, Fed Chair Jerome Powell took a dovish tone, saying he doesn’t believe the U.S. is in a recession because of the strength of the labor market.
The S&P 500 surged 1.83% that day to close above the psychologically important $4,000 level, and Bitcoin BTC/USD, Ethereum ETH/USD and many other coins and tokens soared higher in tandem.
Dogecoin followed suit, enjoying a bullish day, and on Thursday continued momentum caused the crypto to close slightly below the 7-cent level. Dogecoin’s candle during Friday’s session appears to indicate the crypto may be printing a bearish reversal candlestick and bullish traders will want to see Dogecoin trade higher over the weekend to avoid confirming a downtrend.
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The Dogecoin Chart: On Friday, Dogecoin looked to be printing a shooting star candlestick on the daily chart, which could indicate lower prices will come during Saturday’s trading session. If that happens, Friday’s high-of-day will confirm as a higher low, which will negate the uptrend into which the crypto reversed on July 13.
If Dogecoin drops lower over the weekend, the crypto may find support at a lower ascending trendline, which Dogecoin has been trading above since June 18. The crypto has tested the trendline as support on five…
![Dogecoin [DOGE] to rise beyond 40%? Whale activity may spur rally](https://crypto.newswireservice.net/wp-content/uploads/2023/02/doge-wale-1000x600-350x250.jpg)
