Crypto analyst Justin Bennett says December could bring rallies in digital asset markets, with Ethereum (ETH) and Dogecoin (DOGE) potentially leading the way.
The analyst tells his 91,000 Twitter followers that the Dollar Index (DXY), which compares the dollar to a basket of other fiat currencies, sends a bullish signal for crypto markets.
A weaker DXY often signals higher prices for many assets. Bennett notes that the DXY may have just had a failed breakout, and could now face some bearish momentum.
“The DXY looks good for a crypto rally towards December.
Friday’s close inside this channel indicates weakness. We now need a close below 95.80.
Bennett also has his eye on the Total Cryptocurrency Market Cap (TOTAL) chart. According to him, TOTAL is near the end of a large bullish falling wedge. He also notes a divergence between the rising Relative Strength Index (RSI) and the falling price movement. A rise in the RSI during a downtrend is often interpreted as a sign of a bullish reversal.
“A TOTAL falling wedge and bullish divergence is developing on the intraday charts.
When it comes to Ethereum, the analyst says next month is looking good for the world’s second largest crypto. Bennett says ETH is “set to do well in December,” and could already be jostling for a breakout, provided it sees more volume.
“ETH is approaching a breakout level.
Memecoin leader Dogecoin (DOGE) is also participating in the rallies, according to Bennett. He claims that DOGE is in the middle of a breakout, with its first key resistance at $0.25, and a final resistance level at all-time highs above $0.75.
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