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For traders, the Dogecoin market has been a surprising experience. It started as a’meme,’ but it is now competing to be regarded seriously as an altcoin.
This was seen in its recent performance. Following the hyper-driven rallies of GameStop and DOGE, the DOGE market attracted more investors, and the digital asset’s price has risen by almost 6,000 percent year to date.
Dogecoin 12-hour chart
DOGE was trading at $0.4168 at the time of publication, maintaining its high value. At a time when the rest of the crypto market was stabilising, the market experienced an unexpected increase. Despite the fact that there have been few developments in the DOGE ecosystem, the news of its listing on Coinbase may have generated this ripple effect.
This abrupt spike, however, may be followed by a period of adjustment.
The market volatility decreased dramatically when DOGE consolidated between $0.29 and $0.36. However, the current increase has exposed DOGE to severe volatility once more.
DOGE was already overbought, according to the Stochastic RSI, and the signal was indicating a reversal. The RSI was moving below the signal line, which was a negative indicator and might indicate a price drop in the present market. Meanwhile, the Directional Movement Index was so low that bearishness had already set in as downward pressure increased.
Take profit: $0.3688
Risk and Reward: 2.21
The present Dogecoin market was relishing in the bullishness of its market’s unexpected ascent. However, the coin’s joy may be short-lived as a correction looms. The DOGE price may reverse when market volatility intensifies and downward pressure develops. This might push the value of DOGE to $0.45, where short traders can benefit.