Since its inception in December 2013, Dogecoin has completed several market cycles and has been subject to significant fluctuation. DOGE has been characterized by rapid moves in both directions.
More recently, since the beginning of 2016, DOGE has experienced five upward and five downward moves.
Since the beginning of September 2019, doge has been on a slow and gradual uptrend.
Crypto enthusiast and commentator @KingThies suggested that Dogecoin might currently be at the beginning of the sixth such upward move.
Dog leads the pack. Just wait. pic.twitter.com/CPoYm3dOUL
— Crypto Thies (@KingThies) October 6, 2019
If so, Dogecoin has already made a low and the current price level offers an optimal entry for the uptrend that awaits.
How High Will Doge Go?
The previous upward moves have all had different magnitudes.
Going in chronological order, they have been increases of:
Therefore, if the current move has a magnitude between 70% to 1070% it will reach a high between 40-252 satoshis.
This, however, is an extremely wide range.
The average rate of increase of the five moves is 470%, giving us a more reasonable high of 130 satoshis measuring from the recent low.
Based on previous movement, we can see two strong resistance areas, found at 110 and 150 satoshis respectively.
These areas are likely to offer strong resistance, and possibly initiate a reversal is the price gets there.
Therefore, each of these areas would provide a suitable level for the top of this future upward move.
Do you think DOGE will reach one of the resistance areas? If so, do you think it will break out above them? Let us know your thoughts in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
Images are courtesy of Shutterstock, TradingView.
Images courtesy of Shutterstock, Trading View and Twitter.