Dogecoin: Is The Cutest Coin In Crypto Market A Joke?
Kiana Danial | Dec 19, 2018 12:28AM ET
Today we’re going to talk about the cutest coin in the crypto market: Dogecoin. This cryptocurrency was based on the Shiba memes, which were popular back in 2013. It might sound like a joke, but Dogecoin is no laughing matter.
Dogecoin Overview
Jackson Palmer says he created Dogecoin to poke fun at the cryptocurrency space, but this is one joke that hasn’t died down. Five years after it launched, Doge is still going strong and outliving many more serious coins.
But it’s also got some advantages that make it a serious contender in cryptocurrency. It takes one minute to mine a dogecoin block, making it faster than both Bitcoin and Litecoin. And the fees are way lower, too: the fees cost less than a penny per transaction.
Those low fees have made Dogecoin a great way of sending tips or small contributions. In 2014, Dogecoin holders raised $50,000 for the Jamaican bobsled team. Since then, the Dogecoin Foundation has also arranged other charity initiatives.
Dogecoin's Shockingly Repetitive Price Action
Looking at the DOGE/BTC weekly chart, you can spot a shockingly repetitive pattern. It almost looks like Doge is playing a joke on the markets. The pattern brings the pair to the median low support . The move to the top is normally sharp and rapid, while the move downwards is choppier and slower.
The last time we saw the up-move was in August 2018. It took the pair 2 months to reach the median high of 0.00000106, and then the price action followed with the inevitable crash. This time around though, it barely reached the median lows and started going back up again in November. This week, the pair successfully broke above the Ichimoku cloud both on the weekly and daily charts.
Dogecoin Price Action Versus Bitcoin - Shockingly Repetitive Pattern on Weekly Chart
If history is providing any guidance, that would be an indication that we could see a continuation of current up-moves towards the median resistance, followed by another wave of drops. This could be an interesting angle for range traders and for those who aren't interested in holding Doge long-term. Of course, the crypto market has proven to be full of surprises so any trading strategy contains a substantial amount of risk, so you should never invest the money you can’t afford to lose.
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