Welcome to Dogecoin! It is the blockchain project that started as a joke. And that remains a joke because the community members are still having a lot of fun with it. But maybe not in the last seven days.
Dogecoin has lost 7.7% over seven days. Should you be scared? Not really. That’s the same kind of numbers we’ve seen over the previous seven days for almost every cryptocurrency in the market. So DOGE is not in danger to fail.
It’s just following the same trend we could see in Bitcoin, Ethereum, XRP, and almost every other digital asset in the top 30. But that’s changed already, the whole crypto market turned green yesterday, including Dogecoin.
Doge is ranked 29th by market capitalization, and it’s trading at $0.002996 as we write this. Total capitalization is of USD 360 million. And while it’s losing against the BTC, it’s gaining value against USD which is probably more important.
Let’s have a look at the daily and monthly technicals and figure out if what to do about Dogecoin during the rest of the weekend.
24-hour technical analysis
The daily scenario looks neutral for the most part. The price is just beneath the pivot point (which is a bearish signal in the technical analysis standard lore). But it’s still far from the first support level (0,003013), so it’s not likely that DOGE will be testing the daily support levels anytime soon.
But the moving averages and technical indicators are a different story. They are all signaling for the bears. Almost every single moving average is in the red zone. Five out of eight technical indicators are for the bears too.
Given those numbers, the obvious strategy would be to sell Dogecoin short. Well, you shouldn’t. While it’s gaining value today, it’s going down so slowly (which is the same trend we’ve seen all day for the rest of the market) that even a short position will not get you a profit because you won’t be able to pay for your broker’s commission.
Let’s see if we can learn something additional from the monthly scenario.
Monthly technical analysis
The monthly numbers look better, but not by much.
The price is not that far away from the monthly pivot point (0,003260), but way beneath the first resistance level (0,003667) and while the price is slowly but surely going down there still is no chance that resistance levels will be tested today.
Ten out of twelve moving averages are for the bulls, and the technical indicators are split in half between bears and bulls.
The available information today is ambiguous, and the market status is a tiny bit confusing. So what to make of all this?
Well, you have two options. Maybe today is a good day to buy Dogecoin at a low price and make a profit in a couple of weeks, as things pick up. Or perhaps today is a day for you to enjoy a Friday away from the cryptocurrency market until something new happens and trends become apparent for DOGE and the rest of the coins.
We’re sure that you’ll have a lot of fun and joy trading Dogecoin in the future. But maybe not today.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.