When it comes to crypto markets, Dogecoin is without a doubt one that you need to be cautious with.
Dogecoin saw a huge influx of volume on Friday to break much higher. At the height of the session, the market had reached just a bit over $0.21, where the 200 day EMA currently resides. If you look at the Dogecoin chart, you can see just how uncanny it has been that the market respects the 200 day EMA so vehemently. The fact that we pulled back from there should not be a huge surprise as a result, as we currently sit at the 50 day EMA as I write this.
The candlestick itself is impulsive, and it does have a certain amount of volume behind it, so that does suggest that perhaps we could see some noise. If we break above the top of the candlestick for the trading session on Friday, it is very likely that Dogecoin could go as high as $0.30 over the longer term. This would obviously be a big move, roughly 50% above where we are right now, but if you have followed this crypto market for any significant amount of time, you know that Dogecoin gaining 50% is hardly that uncommon.
On the other hand, if we were to break down below the $0.15 level, Dogecoin will more than likely get hammered and go looking towards the $0.12 level. After that, then we would be looking at the $0.10 level, which will attract a certain amount of attention just due to the fact that it is a large, round, psychologically significant figure. With that being the case, we would probably enter a significant accumulation phase as the Dogecoin markets have a significant amount of cult-like behavior attached to it. The markets will continue to be volatile but that is not that big of a surprise. Pay close attention to the bigger crypto markets out there such as Bitcoin and Ethereum, because these smaller alt coins tend to get yanked around by what happens over there. Furthermore, it will be interesting to see whether or not somebody says or does something to get the markets moving, but this is a trading vehicle, not something that I have a lot of long term faith in. When it comes to crypto markets, Dogecoin is without a doubt one that you need to be cautious with.
Source link
