2021 has so far been a pretty eventful year for cryptocurrencies. This year, DeFi tokens, NFTs, smart contract platforms have become increasingly popular. But one of the most different cases was Dogecoin, which many still call the “meme coin”. DOGE’s investors, which have been in decline for a while, are now considering which strategy they should use. Here are the comments of an analyst on this issue…
Valuable levels for Dogecoin according to analyst
Cryptocoin. com, as a result of aggressive buying during the first few months of 2021, the price of DOGE reached an all-time high of $ 0.73. Following its highs, the crypto crash on May 19 significantly hindered the course of DOGE. DOGE’s last rally was observed when the cryptocurrency surged 73 percent from $0.163 to $0.28 in late June and mid-July.
Subsequently, DOGE fell true to the defensive limit of $0.163, negating almost all of the gains made during the bull rally. Also, lack of commercial interest and volume were some of the factors that hurt the price.
What was also worrying, according to analyst Saif Naqvi, was that DOGE fell below the 200-day easy moving average (SMA) for the first time since October 2020, due to the high bearish sentiment in the market. The analyst showed this level in green on the chart. An argument could be made that $0.163 could trigger the next DOGE rally, but “the threat of another breakout cannot be overlooked. ”
What is the “best DOGE strategy”?
According to the analyst, the Relative Strength Index has been trading in the very sell zone for the past few days. This is an area that guarantees a return on price. The index was in a similar position in DOGE’s previous rally. However, the “Directional Movement Index” suggested that the downtrend might be strengthening. The “Awesome Oscillator”, on the other hand, saw a measure of bullish momentum, but not enough to trigger a price surge that would go right to the top.
While there is some evidence to support the bullish narrative for Dogecoin, according to Naqvi, once it approaches $0.163, traders should be cautious before taking a long case. “A close below the 200-SMA (green) could increase losses in the coming days and the most credible strategy in the market right now will be the ‘wait and see’ strategy,” the analyst says.