If you are wondering whether this is the best time to buying Dogecoin or would like to know what is Dogecoin is this article is for you. We also discuss Bitcoin (see one of our bitcoin strategies) and our forecast for the Dogecoin in the crypto markets.
Dogecoin was created by an IBM engineer called Billy Markus. Billy partnered with another software engineer called Jackson Palmer (Aobe software engineer). The two were inspired by a famous dog meme from 2013.
The aim of Dogecoin was pure fun. Ultimately, it lead to fairly high popularity with high trading volumes, exceeding $200 million per day. When it was first released the price spiked by over +%300 in a fairly short period of time.
Dogecoin’s popularity was rekindled following an effort from TikTok users to lift the price to $1.00 In January 2021, due Elon Musk (co-founder of Tesla) and the infamous reddit group that propelled GameStop stock to force hedge funds (Melvin Capital) to incur a loss, Dogecoin strengthened by over +%700 in less than 24 hours.
Dogecoin (DOGE/USD) Daily Chart
Click on the chart to enlarge:
Dogecoin: Social Buying
Dogecoin’s popularity was rekindled following an effort from TikTok users to lift the price to $1.00. In January 2021, due Elon Musk (co-founder of Tesla) and the infamous reddit group that propelled GameStop stock to force hedge funds (Melvin Capital) to incur a loss, Dogecoin strengthened by over +%700 in less than 24 hours.
A poll created by Elon Musk on Twitter triggered the recent gains in Dogecoin (a little over +%30). Naturally, the tweet made headlines and garnered a lot of attention from those that were unfamiliar with the cryptocurrency.
As opposed to traditional trading such as Forex, Indices, ETF’s and Commodities Dogecoin may be traded around the clock, 24/7. Dogecoin can traded across crypto exchanges such as Bitfinex and as a CFD in online brokers with some leverage.
Should I Buy Dogecoin?
Due o Covid-19 (Coronavirus) crypto and trading in general has attracted a lot of attention. We at ddmarkets have been providing forex signals for over 7 years to our members, including commodities and indices such as the Dow and FTSE100.
We have expanded our coverage to cryptocurrencies strategies and signals.
We are very experienced when it comes to technical analysis and fundamental analysis. We did suggest our members to consider buying Mazacoin several years ago. At the time Mazacoin or MZC was traded only against Bitcoin or BTC. Due to the strong gains in Bitcoin a fairly decent profit was made.
In technical analysis it is often fairly risky to buy a financial instrument or asset once strong gains already took place. Lets take a look at Bitcoin for example.
BTCUSD Weekly Chart
Although it is a weekly chart the concept remains the same. Once a rally takes place it is best to wait for a dip, some selling or what is referred to as ‘corrective weakness’ in order to consider buying the cryptocurrency. The same applies for Dogecoin.
Many crypto traders focus on shorter time frames as well. It may be a 5 min chart, a 15min chart, 30min chart, 60min chart etc. Day trading cryptocurrencies is very popular and is not limited to Bitcoin or Dogecoin.
Those that prefer leveraging their trades will use a broker that offer some leverage while those that do not wish to leverage their crypto trades will use an exchange.
Knowing when to buy or when to sell a cryptocurrency requires some trading experience. Many trading strategies from Forex or the Stock market are used in crypto trading. Starting from reversal patterns to technical indicators such as MACD, Stochastic, Bollinger bands and more.
Investors or long-term traders will prefer longer time frames such the daily, weekly or monthly chart. Some are simply buying a cryptocurrency due to its vibe across social media or headlines without carrying any research. On some occasions it will pay off while in other occasions it will not.
Back to our Dogecoin prediction for 2021 following the heavy buying across the exchanges. If you are an investor or an individual that truly believes Dogecoin will reach one US Dollars then the buying price is less relevant to you.
If you wish to time your entry it may not be the best price. As we are dealing with historic highs there are no technical indications Dogecoin will indeed reach $1.oo.
A dip is required and then a technical pattern is needed to affirm the entry price for buying Dogecoin. As time goes by the chart will change (we pay attention to the green and red bars that are referred to as candlesticks) and perhaps offer a more updated forecast for Dogecoin.
To receive and access our future forecast for Dogecoin as well other cryptocurrencies join our crypto plan. If you are also trading in other markets do review all of our trading signals plans.