Dogecoin Could Initiate Altseason, Claims Trader
BeInCrypto | Oct 20, 2019 12:54AM ET
Dogecoin (DOGE) has been known to make several rapid increases throughout its history. Additionally, it has come to be known by some as the initiator for the possible altseason, since it has previously been the first of the major alternate coins to begin its rapid increase.
Based on similarities with previous movements, Dogecoin looks as if it has begun a long-term upward move. However, short-term decreases in the form of a retracement could occur before DOGE possibly reaches new highs.
Cryptocurrency analyst @TraderLenny reminded everyone of this fact and made it known that DOGE has begun to move upward after reaching a significant support level.
Is this increase the beginning of the new trend, and with that possibly the beginning of altseason? Or, is it just a failed upward move, like many before it?
Let’s discuss the possibilities.
Previous Increases
First, we will look at the weekly RSI.
The RSI is a momentum indicator, in which values below 30 indicate oversold conditions.
Every time the RSI has been oversold, the Dogecoin price has increased from 140% to 1130%. (On January 2017, the price did not immediately begin an upward move, but did a double bottom in the oversold zone before initiating its largest increase yet).
Since the RSI showed oversold values in August, we can make the assumption that it reached a temporary bottom.
Looking at the moving averages (MA) we can see that a bullish cross between the 10- and 20-week MAs is very close to occurring.
Get The News You Want
The previous time these MAs made a bullish cross was on September 2018, right before initiating a rapid increase.
Combining with a bullish cross in the MACD, which is moving upward with strength, the uptrend looks likely.
If the MACD were to cross the 0 line, which it has not done in 2019, it could serve as confirmation.
However, the volume has still been quite low, especially for the alleged beginning of an upward move. While there are three more days until the weekly close, we do not expect it to pick up, especially on the weekend.
Dogecoin Summary
The recent movement combined with the similarities to previous upward trends makes it possible that DOGE has just begun an uptrend.
While we cannot yet hypothesize on the final target since DOGE has yet to finish its first wave, it looks as if DOGE will continue its upward movement.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.