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Today, let's discuss Dogecoin. Dogecoin was once the king, but was also disliked, and then rose again. Now it is favored by the world giant Musk. Every move of Musk can cause huge fluctuations in Dogecoin, making it widely known. So, in the next trend, can Dogecoin continue its past glory? What factors and logic influence its price trend?
Let's review the historical trend of Dogecoin. In 2020, Dogecoin experienced an explosive rise in the last bull market, soaring from the bottom of 0.001 to a high of 0.73, an increase of 73 times. However, its current price has slipped to 0.05 and is currently 0.11. Can it create glory again? At the beginning, we mentioned the K-line price and currency price trend. Its K-line pattern and the price trend after the pattern depend on the internal factors and external environment at that time. The cause at that time and the external source at that time will determine the price trend of Dogecoin at that time. The current price trend, K-line pattern and subsequent trend are determined by the current cause and external environment.
This time, Dogecoin almost repeated history, but the past is gone, and the present is now, which cannot be completely replicated. In 2020, the price of Dogecoin was 0.001, and at the lowest level, the weekly chart hit four highs. In this process, the shape of Dogecoin showed the characteristics of multiple tops. Once it broke through the suppression of about 0.050 above, it was like a wild horse running away, starting a continuous upward trend. In the last round of market conditions, Dogecoin had multiple pinning phenomena, including January and February 2020, July and 2021. Its price ushered in a rapid rise in weekly pinning, and the pinning amplitude was very large. After three weekly pinnings, it finally achieved a breakthrough. Therefore, investors who conduct breakthrough transactions are often disturbed by this market, and this may be the case in the future. Because it is difficult to judge which action is true and which is false. Therefore, when buying a certain currency, you need to pay special attention and do not rush to hold a heavy position or chase the rise and fall. What you think is the high point may be just a test position, a strategy to try to solve the upper trapped chips, and it is very likely to fall back to the previous low again to attract you to enter the market. After that, after breaking through 0.05, the price of Dogecoin reached a maximum of 0.073995 in a few months, which is a historical high. The watershed is that when it breaks through this position, it becomes a new outbreak point, that is, breaking through the previous major pressure zone or key position. Although Dogecoin released a huge amount of volume at the top after setting a new historical high. At this stage, bearish engulfing and hammer star patterns are formed. If such a special hammer star K-line combination and pattern appears at the top, coupled with a large volume, it usually means that the chips are loose. From the weekly chart, it is necessary to pay attention to reducing positions or stop profits. Although the market may rebound strongly again or even set a new high in the future, the momentum is difficult to continue the previous period. Obviously, there is a suspicion of main shipments, which needs to be paid attention to afterwards.
Dogecoin will experience a decline of one to two years in the subsequent market. Its last outbreak point is 0.05. At this position, if the price can eventually return to 0.05 after falling, it will not break the detonation point. From this detonation point, it can be seen that 0.05 has 10 times the space of 0.005. The last detonation was here, and the retracement point is also here. If this position is broken, the subsequent space will be greatly expanded and lack support. Therefore, after 0.05 gained effective support, Dogecoin began to consolidate. In this process, we can see a familiar price pattern with several high points in the middle. For this breakthrough, we have focused on recording videos to explore whether it will continue the upward trend. But it turns out that the price trend at that time and the trend after the breakthrough depend on the internal factors and external environment at that time. At this time, its price did not develop according to the last form. We know that Bitcoin has been fluctuating sideways at a high level and slowly declining since March, without an effective breakthrough. Therefore, it is difficult for altcoins to rise sharply. As it turned out, the price eventually turned back down and broke through 0.106.
So, how should Dogecoin be operated now? If you can grasp this point, or grasp the main trading habits, Dogecoin will bring good returns, and it also implies a new entry point. From the trend, we found a problem. In October 2022, Dogecoin had its last long yang and released a huge amount. After the price hit a new high, it began to fall back, approaching the detonation point and the previous low. This situation has also happened in the past. In addition, in February 2024, Dogecoin released a huge amount again, and a huge amount appeared again in the second week after the long yang, in the shape of a propeller, which means that the chips are loose and the amplitude is extremely large. This situation is not a good thing, it means that the main force has taken action. After that, the market began to fall back and hit the detonation point.
Therefore, the entry point of Dogecoin should be as close to this position as possible, which can be used as a gradual entry strategy. If you consider investing funds, you can enter the market in batches when approaching this position. If this position is broken, the previous low point will be tested. The 0.10 position, that is, the area above 0.085 to 0.010 is the first layout area. If this area falls below, the second layout area is here.
Therefore, there is no fixed rule for trading, and the method of fund management varies from person to person. Why is there a saying that one should build a trading system that suits oneself? As for where Dogecoin will go in the future? We will talk about it when we have the chance. That’s all for today, see you next time.
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