Hello dear friends. Here is a repost of my trading post for week 3 with grading as follows.
Greetings dear friends and welcome to my first trading post for team Reminane in week 3.
Introduction
DOGE stands to represent the Dogecoin cryptocurrency. Dogecoin is the first meme token that was created in the crypto world. Developed by Jackson Palmer and Billy Markusin 3013, the coin was meant to be joke. This is why the face of the coin is a Japanese dog breed known as Shiba Inu which at the time was shared as a meme.
This open sourced crypto currency actually originated it's own technology based on the technology that was being employed by the already existing Litecoin.
The token is inflationary in that it has no maximum supply that can be released. It also makes use of the Proof of Work consensus mechanism in it's ecosystem.
Exchanges
Dogecoin can be traded on the following exchanges.
- Binance
- Coinbase exchange
- Gate.io
- Huobi Global
- FTX
- Bitthumb
- Kucoin
- Kraken
- BitFinex
- Bybit
- Gemini
- Coinone
- Poloniex
- Bittrex
- Coinlist pro
- OKX
- Liquid
Technical Analysis
The technical analysis for Dogecoin is as follows
Dogecoin Price: $0.1361
Price Change: 24h $0.01432 11.76%
24h Low / 24h High: $0.1217 /$0.1376
Trading Volume: 24h $1,676,372,667.21 205.60%
Volume / Market Cap: 0.09255
Market Dominance: 0.93%
Market Rank: #12
Market Cap: $18,113,791,298.87 12.19%
7d Low / 7d High: $0.1146 /$0.1376
All Time High: May 08, 2021 (a year ago) $0.7376 81.49%
All Time Low: May 07, 2015 (7 years ago) $0.00008547 159634.26%
Dogecoin ROI: 24333.34%
Circulating Supply: 132,670,764,300 DOGE
Total Supply: 132,670,764,300 DOGE
Max Supply: No Data
The market had first experienced a downtrend before entering a consolidating market. But based on the highs and lows, the buyers were gaining momentum.
I was expecting the market to go bullish based on this.
My trading strategy was quite simple. First of all, I identified my resistance and support lines on the chart. This is what confirmed to me that the market is in consolidation and might go bullish at any time.
I also chose to use the TRIMA 5 and TRIMA 10. These lines mover more closely to the prices and needed that since I was working in a 5 minutes timeframe. I also made use of the MACD to filter out false signals and guide me.
I waited for the MACD to start oscillating about it's average line which it did before placing my long trade. The stop loss was a bit below the support line and the take profit was at the resistance as I expected price to hit the resistance line.
I went to binance and placed my trade using futures trading.
I planned to sell it when it hit my take profit. But the way the chart was moving, it was going to take some time. And since I didn't want to make losses, I closed my trade at the point where I could make profit .
But in the evening, I realised my predictions were right all along. DOGE broke resistance and went bullish for quite some time. So it hit my take profit and even went further.
Dogecoin is a good coin for trading. My recommendation is to observe the market. But if you see it going bullish, go ahead to buy. This coin has a very high liquidity which makes it very good for trading.
Dogecoin though a meme token, is no longer as funny as it was in 2013. The token has gone through several scandals from it's developers but it has still come put a tight in the market.
The fact that it is deflationary prevents it's price from rising explosively like Bitcoin which is an inflationary token. Because of this, the cojn is more suitable for trading and this is facilitated by the numerous number of times xchages where the coin is listed on.
References: https://coinmarketcap.com/currencies/dogecoin/
Thanks for reading.
Cc:
@nane15
@reminiscence01