Introducing the token for the day
Doge is the official token of the Doge network. The doge coin is classified as a meme token. These meme tokens are simply coins which have no use case but are pumped and pumped by a community to make large profits.
These meme coins are mostly traded on Decentralized exchanges like pancakeswap because they are very risky investments and cannot be trusted enough to be listed on reputable centralized exchanges like Binance and Huobi Pro. Doge and Shiba Inu are the only coins listed since there are the top 2 meme coins in the world.
Doge was founded by Billy Marcus and Jackson Palmer sometime in 2014. There was built with similar codes to that of the litecoin network and this is why it uses the POW consensus mechanism. Doge coin has the tendency of processing 30 transactions per second with cheap transactions fees.
Today, doge coin doesn’t really have a used case with no smart contracts but it can be used as a means of exchange. It is backed by the richest man in the world, Elon Musk and this is more of the reason it finds a seat in top ten on the cryptocurrency charts.
Why I am optimisic about the project today/Analyzing the Coin
I am not optimistic about DOGE. It's just that today, I checked the charts and once I saw a trading opportunity, I took it For the analysis, I used my knowledge of support and resistance zones with indicators like the parabolic sar and the MACD. The asset pair is DOGE/USDT while the timeframe I used is 15-minutes.
Price broke from the resistance level and this means we should expect a bullish trend. Looking at the parablic SAR it produced a signal of some dots under the price, these dots act as a support level and signifies that price is in a healthy up trend.
The mac D indicator was also converging to cross the signal line to the top. If this happens, we should expect a bull trend. With all my analyses, I placed a buy trade.
I booked my trade at $0.1411 to be sold with take profit at $0.1436 and stop loss at $0.1395.
Looking at the chart below, price hit my take profit level and I made some profit.
My Plan to Hold DOGE long or Sell
I do not have any plans to hold the DOGE coin. My reasons are below,
DOGE coin is a meme coin. For those who have a vast knowledge about these meme coins, they don't not have a solid project behind it. This makes DOGE vulnerable and entirely unpredictable because it actually has no usecase to the cryptocurrency community. The only usecase it may have is to be a medium of exchange but since it uses the POW consensus mechanism, the network is too slow to serve a large amount of users.
From what I mentioned above, I would only consider DOGE to be traded with the hype and not to be used as a store of value.
Would I recommend DOGE to people
I would not recommend DOGE to anyone and this is because of the reasons I mentioned above.
Conclusion
In today's post, I have written on the DOGE coin. I have also done some analysis on the token and placed simple trades accordingly.
Thank you!
CC: @abdunavi03
@shemul21