Doge Coin – High Risk, High Reward

20 giu 2023

TLDR:

• DOGE has been in a downtrend since May 2021.
  
• Overall DOGE’s price depreciated more than 90% since its ATH to its current value of 0.0619 USD.
  
• Although the chart looks bearish, I have some reasons to be optimistic about DOGE’s chances of future recovery (Twitter).
  
• This is a Degen play, not something to bet your house money on.
  

DOGE Coin Long Term Chart Analysis

• If we examine the DOGE chart on the weekly timeframe, we can see a steady downtrend. DOGE’s downtrend has lasted more than two years.
  

• A closer look at the chart reveals a Descending Triangle within a Descending Triangle.
  
• Surprisingly, the Descending triangle broke to the upside and generated a 167% price appreciation.
  

• DOGE remained within the larger Descending triangle but now it is forming a Falling Wedge.
  
• The target of this Falling Wedge is a 125% price increase.
  
• We do not know if and when DOGE will break out to the upside, much less if the breakout will generate much profit. A breakout of the weekly RSI line resistance could be a clue but by then a lot of profit could be already made.
  
• This idea is far from certain. My approach is to buy a small bag and just sit on it until 2025. If it works-great, if not- also great. This a taco money trade. I don’t think that DOGE justifies more than that until it proves it has what it takes to break the downtrend.
  

Trade Idea:

• Entry: 0.05 USD (wedge support line)
  
• SL: 0
  
• Target:0.34 USD
  
• TP: 0.16, 0.34 USD.