Is Dogecoin Just Another Hoax Coin or Will It Be Worth Something?
Cryptocurrency is a unique world, where the most unique coins have the highest value. On the other hand, some cryptocurrencies haven’t achieved anything substantial and still have a huge market capitalization.
Dogecoin has rallied so far, mostly because of the endorsements and tweets of Elon Musk. Otherwise, Dogecoin doesn’t provide any substantial technical advantage over other crypto or solves the existing problems with cryptocurrencies. Now, let’s head towards the Dogecoin technical analysis.
Dogecoin is facing difficulty in developing a trending price action. Compared to the last months’ daily volumes and price action, August has been relatively slow for DOGE.
The reason for this slowdown might be anything. Still, since Dogecoin is witnessing lower transaction volumes on its counter, we can expect the price to remain stagnant with very small daily candles. For Dogecoin to trend again, it needs to surpass the immediate resistance of $0.2465, and on the contrary, it has support at $0.1895.
Comparing these levels to the current value of $0.1998, there is a 20% upside potential on the risk on 10% downside, which is a decent risk to reward ratio. Those holding Dogecoin from the beginning of 2021 need not average their positions, but those who bought at the highs of May 2021 can surely bring their average value a bit low. Still, they should maintain a well-diversified cryptocurrency portfolio as per our Dogecoin prediction.
In the last two months, RSI for Dogecoin maxed out in June 2021 with a level of 54; since then, it has been trading between the range of 30 to 48. Change of RSI levels to above 60 will indicate some positive buying at those levels, bringing a whole new dimension of positive sentiment on Dogecoin, helping it inch upwards towards the long-awaited targets.