Baby Doge Coin BABYDOGE/USD was declining over 3% during Saturday’s 24-hour trading session, showing comparative weakness to Dogecoin DOGE/USD, which was bouncing slightly after Friday’s bloodbath caused the latter to fall 10%.
Baby Doge Coin’s massive circulating supply, which sits at over 115 quadrillion, makes it difficult for the crypto’s value to increase substantially. In comparison, Dogecoin has a circulating supply of 132 billion.
Naturally, when there is a low supply and high demand, prices increase. In contrast, when there’s high supply and low demand, prices slump.
Baby Doge Coin has been attempting to correct its supply and demand issues by burning trillions of its tokens each day. On Saturday, the project announced on Twitter that it had burned over 10 trillion Baby Doge Coins over the last 24 hours.
Many of the project’s followers weren’t impressed with the number, however, with multiple individual investors responding to Baby Doge Coin that they hold more than what the project is burning in a single day.
From a technical perspective, Baby Doge Coin looks set to bounce, but because the crypto is trading in a consistent downtrend, the rise is likely to be temporary.
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The Baby Doge Coin Chart: Baby Doge Coin’s most recent downtrend started on Nov. 9, the most recent lower high was printed on Wednesday at $1.056e-9 and the most recent confirmed lower low was formed at the $0.99e-9 mark on Dec. 12. On Saturday, Dogecoin fell under that lower low to reach a low-of-day at the $0.89e-9.
- After printing the low-of-day, Baby Doge Coin bounced up sightly, which may cause the crypto to print a hammer candlestick on the 24-hour chart. A hammer candlestick in a downtrend can indicate the next temporary low is in, and a bounce is on the horizon.
- If Baby Doge Coin rebounds on Sunday or Monday, the crypto may find resistance at the eight-day exponential moving average, which is trending at about $0.99e-9. If the crypto can pop up above that level and regain the area as support, Baby Doge Coin has a chance of printing a higher high, which would negate the downtrend.
- Baby Doge Coin has resistance above at $0.94e-9 and $1.01e-9 and support below at $0.79e-9 and $0.61e-9.
Photo: Courtesy of Shutterstock.
Image and article originally from www.benzinga.com. Read the original article here.