As a crypto recreation, it is Unhealthy Dogecoin, Good DOGE! – Investorplace.com
What is Dogecoin (CCC:DOGE-USD)? The question was asked more than once in 2021. And these days DOGE looks like a pile of crap. However, if you look ahead, is DOGE a better buy or a bearish fang crypto to avoid? Let’s look at what’s going on in the digital coin next to and on the price chart and then offer a risk-adjusted determination based on those results.
Source: Orpheus FX / Shutterstock.com
See DOGE run. Good boy! See Dogecoin take a dip on meme trading investors. Bad sign! Head to Reddit’s WallStreetBets or any other trading forums where excited and unconscious investors exchange insults, cute pictures, pounding their chests and stuck fragile stocks prone to muscle building and you will find yourself alive and well on tweets, retweets and DOGE Find stocks and shit.
Dogecoin is mostly a joke
It’s no secret that there is great interest in DOGE, a crypto whose birthright was a joke a few years ago Teslas (NASDAQ:TSLA) Thanks to Elon Musk. Importantly, despite its infamous fame and obvious popularity, the coin remains largely a joke to this day.
With Dogecoin, ownership does not participate in the cryptocurrency’s first and largest digital asset. That would Bitcoin (CCC:BTC-USD). Investors also do not get a piece of the “world computer” of the market or the anonymity or transaction capacity that other coins offer.
On these occasions, eyes, hands and purses should be attracted ether (CCC:ETH-USD), Ox (CCC:OXEN-USD) and Speckle (CCC:DOT-USD).
But do not take my warning as one that demands your respect. Take it from the man himself. Last month, Elon Musk took a break from his role as DOGE’s resident emcee and stepped onto another comedic stage as a host for one night on Saturday Night Live.
During the popular news segment of the show, presenters Michael Che and Colin Jost Elon asked, “What is Dogecoin?” And after repeated and failed attempts to lure the anchors with something tangible, or rather substance, for the existence of DOGE, the truth emerged. Dogecoin is simply a hassle and a vehicle for trading with the sole purpose of converting DOGE back into more US dollars than was invested.
Dogecoin Weekly Price Table
Source: TradingView charts
Since Elon’s shot over the bow of the bullish DOGE investors, the air has been cleaned and dust has settled last month. When you have some less fun money to save, the conversion of those greenbacks to DOGE will evolve. In appreciating a short-term trade of no value other than the DOGE price chart, the bulls appear to be on the verge of regaining the upper hand.
As Dogecoin illustrated weekly shows, the coin has stabilized and has entered its third week of internal consolidation following Elon’s influential corrective takedown. It is very promising. In addition, the price action has formed a bullish uptrend with a series of higher highs and lows. That’s not all.
Another plus for DOGE investors is that the recent more than two weeks of consolidation work has kept channel support at a level of 62%. All in all, the conditions for trading Dogecoin with lower risk and higher reward are good.
In an effort to convert DOGE ownership back into a larger amount of US dollars, I would suggest buying the coin when a second rally above the high of the initial inner candle occurs in conjunction with a bullish crossover in stochastics. The risk at this point is about 10 cents. That commitment, and the chance for bigger fools to step in to cement the uptrend, is what it is.
And that’s a good looking trade that is skewed in the favor of bullish speculators.
Good DOGE !!
At the time of writing, Chris Tyler holds (either directly or indirectly) the positions of Grayscale Bitcoin and Ethereum Trusts (GBTC and ETHE). The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s posting guidelines.
Chris Tyler is a former floor-based derivatives market maker on the US and Pacific stock exchanges. For more market insights and related considerations, follow Chris on Twitter @Options_CAT and StockTwits.