How to Model Technical Analysis Future Dogecoin (Dog)
The world of cryptocurrencies has undergone meteoric growth in recent years, with many new coins popular and the attention of investors and merchants. Such a currency is Dogecoin (Doge) created by Jackson Palmer and Billy Markus in 2013. Despite its relatively low market capitalization, compared to other main cryptocurrencies such as Bitcoin (BTC) and ETHEREUM (ETH), DOGE has maintained the basis for users and paid considerable attention.
In this article, we examine how the technical analysis will shape the future dogecoint (DOGE) and will provide information on why the relevant and potentially powerful tool remains in the cryptocurrency market.
What is the technical analysis?
Technical analysis, also known as the graphical model or technical trade, is a method to predict future asset prices by analyzing samples, trends and other graphical indicators. This includes identifying and studying the diagrams of historical prices to know knowledge. Technical analysts use various tools such as diagrams (such as moving media, tendency), indicator symbols (such as SSI, Boltinger bands) and technical indicators (such as fibonacci levels, support levels and resistance).
Breeding dogecoin (dog)
Dogecoin was born from Internet Meme in 2013. At the same time, he received considerable attractiveness and popularity around 2014-2015 when a community made 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
In order to understand how the technical analysis shapes future DOGE, examine some key factors that have influenced the price of the currency in time:
- Diagram models : 50 days -move medium that is a horizontal line that connects two diagram periods (such as 50 days and 200 days) to identify DIGE’s short -term trends. The bullish trend of over 50 days appeared, which indicates potential purchase pressure.
- Trend lines : Simple movement (SMA), a long -term tendency with 20 and 50 periods, suggesting that the doge price continues to increase.
- Support and Resistance Levels
: The neckline, which operates as a resistance level of around $ 0.25, provided support for the past price. If prices retire below this level, this may be a sign of potential reversal.
- SIFENIC MODELS : DOGE candle holder often has a growth pattern with an upward model (ie the price is closed above the maximum maximum) followed by continuing growth.
Perspective and forecasts
Based on these technical indicators, we can make additional forecasts for future dogecoin:
* In the short term (1-3 months) : The 50-day moving medium remains above the neck cut, indicating that prices can continue to increase. The Bullish trend line appears above the current price level.
* Medium-term (6-12 months) : SMAS 20 and 50 periods are likely to converge a long-term trend, which can reach a new maximum of $ 1.00 per coin.
* Long-term (1-5 years) : Diagram models, including growth and support levels, suggest that DOGE can continue to be attracted as more and more investors enter the market.
Conclusion
Technical analysis plays a significant role in modeling the future Dogecoin (DOGE). Analysis of the movements, trends and models of historical prices, merchants and investors can identify potential purchase and selling signals. Diagram models such as growth lines, support levels and neck cuts provided valuable information on DOGE market dynamics.