How to model the technical analysis The future Dogecoin (Dog)
The world of cryptocurrencies has undergone a meteoric growth in recent years, many new coins gaining popularity and attention from investors and traders. Such a currency is Dogecoin (Doge), which was created by Jackson Palmer and Billy Markus in 2013. Despite its relatively low market capitalization, compared to other major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), Doge a maintained a base dedicated to dedicated users and has obtained significant attention of the media.
In this article, we will explore how the technical analysis shapes the future Dogecoin (Doge) and will provide information on why a relevant and potentially powerful asset remains on the cryptocurrency market.
What is the technical analysis?
The technical analysis, also known as the recognition of the graphic model or technical trading, is a method used to predict future asset prices by analyzing patterns, trends and other graphic indicators. This involves identifying and studying historical prices diagrams to make knowledge of the knowledge. Technical analysts use various tools, such as types of diagrams (for example, moving mediums, tendency lines), indicator symbols (eg, Bollinger bands) and technical indicators (for example, fibonacci levels, support levels and resistance) to analyze price movements.
Breeding Dogecoin (Dog)
Dogecoin was born from the internet meme “Merry Christmas” in 2013. However, he obtained a significant traction and popularity around 2014-2015, when a community began to create memes and jokes about Doge. The early adoption of the currency was largely determined by its low market capitalization (about $ 100 million) and a relatively large trading volume.
Technical analysis in Dogecoin
To understand how the technical analysis shapes the future Doge, examine a few key factors that have influenced the price of the currency in time:
- Diagram models : 50 -day -moving media, which is a horizontal line that connects two periods of diagram (eg 50 days and 200 days), was used to identify trends on short term in dog. A line of bullish trend has appeared above 50 days, which indicates a potential purchase pressure.
- Trend lines : Simple motion (SMA) with 20 periods and 50 periods have formed a long -term trend upwards, which suggests that the Doge price will continue to increase.
- Support and resistance levels : The neckline, which acts as a resistance level around $ 0.25 on the currency, offered support for the past price. When prices retreat below this level, it can be a sign of a potential reversal trend.
- Sifenic models : Doge’s candlesticks often have a growth pattern, with an upwardly included model (ie, the price is closed above a maximum maximum), followed by a continuation of growth.
Perspectives and predictions
Based on these technical indicators, we can make more predictions about the future Dogecoin:
* In the short term (1-3 months) : The 50-day-moving media will remain over the neckline, which indicates that prices can continue to increase. A bullish tendency line will appear above the current price level.
* in the medium term (6-12 months) : SMAs with 20 periods and 50 periods will probably converge a long-term trend upward, which could reach new maximums around 1, 00 USD on coin.
* Long term (1-5 years) : Diagram models, including growth and support levels, suggest that Doge can continue to get traction as more investors enter the market.
Conclusion
The technical analysis plays a significant role in modeling the future Dogecoin (Doge). Analyzing the movements, trends and models of historical prices, traders and investors can identify potential purchase and sale signals. Diagram models, such as growth lines, support levels and neckline, provided valuable information on Doge Market dynamics.