Dogecoin DOGE Price Analysis: 16 March 2023
Dogecoin Price Analysis confirms a situation favorable for shorting duration trade in the cryptocurrency. In the frame of 4-6 days, the price might rise to $0.082, but traders need to keep a strict stop loss of $0.063.
Current Market Situation
Dogecoin has fallen more than 7.44% for the last 24 hours despite forming Three White Crows bullish sign on daily charts. The last 24 hours' price range was $0.07152 and $0.07764. The price is trading at a day low when writing this article. The cryptocurrency has 4.57 Million unique wallets, down from 4.58 Million, out of which 10% of the wallets control 53% of the total supply. The net market cap has also decreased by 7.56% to $9.6 Billion.
However, the current market trend is bullish overall, and therefore there is an opportunity to buy the cryptocurrencies at current levels and sell near a short-term resistance. Further, there needs to be a strict stop loss of near-term low.
Dogecoin Technical Analysis
We have used daily charts in the current trade setup because we wish to continue this trade in the next 4-6 days. We have used RSI with levels of 70-30 and MACD to identify entry and exit points.
In Daily charts, the Dogecoin price has negated a resistance of $0.082, and the recent low of $0.063 will act as our support. The Technical indicators show the following:
- RSI has come down to optimum levels.
- MACD is about to show a bullish crossover.
Based on the chart levels, we expect the coin to move to $0.082 in a short span of 4-6 days. However, following a market rally, there can be some volatility. Therefore, we need to keep a strict stop loss of $0.063, which was the last support for the crypto.
Dogecoin Sentiment Analysis
Investor sentiment shows an overall positive mood for price. The details are:
- Investing.com: 70% are Bullish
- CFGI: 57% Bullish
Dogecoin On-Chain Analysis
On-Chain analysis shows slightly negative data for further price movements.
- There are an equal number of holders in loss and profits, both at 45% each.
- There has been an increase in large transactions of over $100k at 309 Transactions on March 14 v/s 223 Transactions on March 13.
Overall Outlook
Traders can buy Dogecoin with a strict stop loss of $0.063 with a target of 0.082. The overall outlook is positive because of a stable bullish market trend over the last 2 months.
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