Understanding of the price action: a focus on dogecoin (doge)
The world of cryptocurrency has exploded in popularity in recent years, with many new and established coins that have made themselves fame. Among these, a cryptocurrency stands out for its unique mixture of clamor and fundamental underlying to social media-dycoin (doge). This article will deepen the world of doge, exploring what makes him appear from the point of view of the price action.
What is the action of the price?
The price action refers to the technical analysis of market data, focusing in particular on the fluctuations of the price over time. It implies the examination of various schemes and graphic indicators to evaluate the strength and direction of the price movement of a heritage. By analyzing these models, traders and investors can make informed decisions on the purchase or sale of a particular coin.
The rise and fall of Dogecoin (Doge)
In 2013, Jackson Palmer created a simple bitcoin -based currency called Litecoin (LTC). However, it was not until December 2013 who launched Dogecoin, initially as a joke. Despite his humble beginnings, Doge quickly gained traction on social media platforms such as Twitter and Reddit.
The popularity of the coin rose in January 2018, when the hashtag #jokecoin made trend all over the world on Twitter, with millions of users who participated in Hype. However, this enthusiasm was short -lived, since the price fell almost zero after a series of important news articles that criticized doge for its potential to be a scam.
Action of the price in dogecoin
As we deepen the world of price action, it is essential to understand that Doge is known for its wild fluctuations. These peaks and jumps have created an interesting model, often indicated as a “market correction” or “price oscillations”.
* Relzist bubbles: When prices increase rapidly, often fueled by the increase in demand by social media users, traders become enthusiastic about the potential of the coin. However, when these bubbles broke out, the prices precipitate, leaving investors with significant losses.
* Booking faults: On the contrary, when prices begin to decrease, often due to the increase in skepticism or negative news, Doge experiences a strong drop in value.
Action indicators of the key price
Several key indicators have been used by traders and investors to evaluate the force of the doge’s prices:
- Middle mobile (but): The 50 -day mobile average acts as a “support” line, while the 200 days acts as a “resistance” line. When prices cross above or under these lines, it can report potential changes in the direction.
- Relative resistance index (RSI): This indicator measures the momentum of prices and the levels of sovereign/hyper -time. A 70 or higher reading indicates a hyper -fired condition, while a 30 or lower reading suggests a bearish trend.
- Bollinger gangs: These bands represent volatility, with the upper band that acts as a resistance and the lower band as a support.
Technical analysis tools
To further understand the action of doge prices, traders use various technical analysis tools:
- Graphic models: Inversion models such as head-and-and-show, triangles or wedges can indicate potential purchase or sale signals.
- SUPPORTS AND RESISTANCES: Identify the key support levels (e.g. $ 0.005) and resistance (for example $ 0.01) can help operators to make informed decisions on the purchase or sale of doge .
Conclusion
Understanding the action of Dogecoin prices requires a deep understanding of technical analysis and market fundamentals. By examining price behavior over time, operators and investors can identify potential purchase signals or sell and make more informed decisions. While the action of doge prices is marked with wild fluctuations, this article has highlighted indicators and key tools that can help browse these trends.
Disclaimer:
This article is only for information purposes and should not be considered as investment advice.
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