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Dogecoin. To buy or to throw? Fundamental and technical analysis

12 September 2018 16:13, UTC
Dogecoin. To buy or to throw? Fundamental and technical analysis
Dogecoin - Litecoin fork, became popular because of coin "participation" in the ether-bridge  creating project, launched on September 5. Implementation of this technology of decentralized, instant exchange of DOGE to Ethereum through the Dogethereum smart-contract (DOGX) provided coin with 272% growth in 10 days and getting into the top-20 rating.

The uptrend may continue because of the redemption traders "merge" quotes to lock in profits before the start of the project Dogethereum and the apparent constancy of the interest aldonu expressed in the values of intraday volume.

Traders can raise the rate until  exchange of DOGE coins to DOGX, which will begin after September 30, 2018.

In the future, the Dogecoin trend will again correlate with the common market, i.e., the dynamics and direction will be determined by the decisions of the SEC Commission on the opening of the Bitcoin ETF Fund, as well as the results of the meeting of G-20 heads of state in November, which should approve the plan for international regulation of digital currencies.

Technical analysis DOGE/USD

High volatility of quotations, as a side effect of demand, greatly distorts the technical analysis of DOGE/USD pair. Therefore, it is better to be guided by non-indicator methods and a large timeframe.

On the weekly chart, the rate "collided "with the resistance zone – above 0.006 there are three strong levels that can not be passed without correction. If by the end of this week the reached highs are not "rewritten" during the growth, then there will be two strong signals for a reversal move:

  • Double top
  • "Three soldiers" - growing candles arranged in a row

On daily quotes, the growth is supported by the lower inclined border, the angle of which shows the strength of the trend. DOGE prices failed to gain a foothold above the level of 0,006 despite a new local maximum. Therefore, to participate in the current rally, you should look for the entry point not at an inclined level, but use the Fibonacci correction lines.

If you take the starting point of the growing trend at the first price impulse confirmed by volume, then the significant level of entry into purchases is located at 0.0055. Additional support for trade at this price will be provided by "magic numbers" - round numbers quotes, which prefers to enter the majority of traders. 

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