Hello all! I hope everyone is having a beautiful Sunday. It's 70F and sunny here, and after a 32mile bike ride this morning, it's time to take a look at our favorite cryptocurrency.
Analysis: Bearish..?
It seems to me like DOGE may be breaking down. The price has fallen below our long time and tested trend line, the daily MACD is gaining momentum in the bearish direction, and even after multiple attempts of breaking the $0.06 resistance, there remains almost no volume relative to January and February.
I always tell people interested in what we do that we aren't trading a stock or a currency. Rather, we are trading against other traders. Trading psychology is perhaps the biggest component of being a day trader. That being said, my psychological analysis of recent price action is bearish as well, at least in the short term.
Dogecoin has created massive hype, outpacing that of Bitcoin on the popular social media platform Twitter. Celebrities are jumping on to the DOGE train. Companies, big and small, are hopping on as well. The popularity of the coin has increased drastically, but the theme has remained the same; BUY AND HOLD. This has created reliably steady gains over the past few weeks. Slow and steady wins the race, but with momentum fading, the sentiment could turn sour very quickly.
New investors waiting to see if DOGE can break to the upside has nearly halted upwards momentum. With the majority of investors in Dogecoin being new to the markets, any move downward will likely spark fear and result in a significant selloff. Without new investors jumping on the trend, DOGE may be put down.
Correct me if I'm wrong, but the general feeling is quite a bit more pessimistic today than it was yesterday. I have closed my position pending a breakout, up or down; More than likely down at this point. Dogecoin is still high on my watchlist though. Limit orders are in place pending a convincing breakout to the upside, and I'm looking to scale into my previous position of roughly 900,000 coins.
Current Position - 0 DOGE
Stop Loss - N/A
Take 25% Profit - N/A
Take 100% Profit - N/A
Potential Upside - N/A
Potential Downside - N/A
Risk to Reward Ratio - N/A
As always, I am not a financial adviser. The views expressed are mine alone and should be taken with a grain of salt. Do your own research and make your own decisions. I am not responsible for any financial loss. Only invest what you can afford to lose.
Analysis: Bearish..?
It seems to me like DOGE may be breaking down. The price has fallen below our long time and tested trend line, the daily MACD is gaining momentum in the bearish direction, and even after multiple attempts of breaking the $0.06 resistance, there remains almost no volume relative to January and February.
I always tell people interested in what we do that we aren't trading a stock or a currency. Rather, we are trading against other traders. Trading psychology is perhaps the biggest component of being a day trader. That being said, my psychological analysis of recent price action is bearish as well, at least in the short term.
Dogecoin has created massive hype, outpacing that of Bitcoin on the popular social media platform Twitter. Celebrities are jumping on to the DOGE train. Companies, big and small, are hopping on as well. The popularity of the coin has increased drastically, but the theme has remained the same; BUY AND HOLD. This has created reliably steady gains over the past few weeks. Slow and steady wins the race, but with momentum fading, the sentiment could turn sour very quickly.
New investors waiting to see if DOGE can break to the upside has nearly halted upwards momentum. With the majority of investors in Dogecoin being new to the markets, any move downward will likely spark fear and result in a significant selloff. Without new investors jumping on the trend, DOGE may be put down.
Correct me if I'm wrong, but the general feeling is quite a bit more pessimistic today than it was yesterday. I have closed my position pending a breakout, up or down; More than likely down at this point. Dogecoin is still high on my watchlist though. Limit orders are in place pending a convincing breakout to the upside, and I'm looking to scale into my previous position of roughly 900,000 coins.
Current Position - 0 DOGE
Stop Loss - N/A
Take 25% Profit - N/A
Take 100% Profit - N/A
Potential Upside - N/A
Potential Downside - N/A
Risk to Reward Ratio - N/A
As always, I am not a financial adviser. The views expressed are mine alone and should be taken with a grain of salt. Do your own research and make your own decisions. I am not responsible for any financial loss. Only invest what you can afford to lose.