Understanding Price Action: A Focus On Dogecoin (DOGE)
Understanding of the price action: a focus on dogecoin (doge)
The world of cryptocurrency has become increasingly complex and volatile in recent years, with prices that flow quickly on online exchanges. An aspect that is often neglected is the importance of understanding the action of prices, which provides for the analysis of historical data to identify trends, models and anomalies in the price movements of a cryptocurrency.
What is the action of the price?
The action of prices refers to the visual representation of the price movements of a cryptocurrency over time. It implies the plot of key levels such as tall, low, open, near and volume against each other to identify trends and models. These data can be used to predict future price movements, identify potential inversions and make informed investment decisions.
Dogecoin (Doge) : a popular case study
Dogecoin, a decentralized cryptocurrency with a limited supply of 100 million coins, is an excellent example to illustrate the concept of price action. Doge has been exchanged at extremely high prices in recent years, with some remarkable cases of extreme volatility. In this article, we will deepen the world of Dogecoin and explore its unique characteristics, the price action models and potential areas for investments.
Features of Dogecoin
Dogecoin was created in 2013 by Billy Markus and Jackson Palmer as a joke. Despite his humble beginnings, Doge has acquired significant popularity among cryptocurrency enthusiasts due to his approach led by the community and charity initiatives. One of the key characteristics that contribute to the action of doge prices is its massive market capitalization, which is currently about $ 20 billion.
Price action models
There are several models of prices that can be identified in a dogecoin graph:
- Trendy inversions
: When a cryptocurrency begins to decrease and therefore reverses the direction, this is often defined as a trend reversal.
- Support levels : These are critical points where the price of a cryptocurrency is likely to recover or stabilize.
- Resistance levels : These are areas where the price tends to resist or move away.
Analysis of the Dogecoin Prices
One of the most significant aspects of the analysis of Doge’s prices is to identify their support and resistance levels. By tracing these levels against each other, we can see if there have been remarkable reversals or rebounds:
* 2017: Doge experienced a huge price wave, reaching a historic maximum of $ 0.30 for money.
* 2019: The price decreased abruptly after the prohibition of the century on the offers of initial coins (ICOS) in January 2018.
* 2021: Doge has reached a minimum of all times of about $ 0.01 for money and therefore bounced at current levels.
Investment strategies
Understanding of dogecoin prices action can help investors make more informed decisions on the purchase, sale or detention of cryptocurrency. Here are some investment strategies that could be applicable:
* Curtain following : Buy Doge when reversing from a downward trend and sells when it breaks.
* Support Resistance Trading : use support levels to buy when prices decrease and resistance levels to be sold during breakage.
* Recognition of pattern : identify and exploit the reasons such as head and shoulders, triangle or inverse shoulders.
Conclusion
Understanding the action of prices is a crucial aspect of the cryptocurrency investment. By analyzing the historical data of doge, we can identify trends, models and anomalies that can indicate potential investment opportunities. While Dogecoin has been known for its oscillations of wild prices, a careful analysis of its price actions can help investors make more informed decisions on their investments.
Disclaimer: This article is only for educational purposes and should not be considered as an investment advice.