Dogecoin (DOGE) has been known for rapid movements of significant magnitude throughout its history. Furthermore, some believe that it is the initiator of “altseason” since the asset has previously been the first one from major altcoins to post significant increases.
In a positive announcement, Binance announced in the final week of October that it is listing Dogecoin (DOGE) for its U.S. customers. Several DOGE pairs have been available for international customers since July 2019.
As for its price movement, DOGE seems to have reached a low and is at the beginning of a new cycle. Based on our analysis, it should reach a high of at least 75 satoshis.
Crypto trader @anambroid stated that DOGE is the “trade of the winter”, by suggesting that it is currently at the beginning of a new upward cycle.
Reminder that this is the trade of this winter.https://t.co/v3QBx9hR8z
— Ambroid (@anambroid) November 7, 2019
Let’s take a closer look at the price movement and decide if the claim has any merit.
The DOGE price is currently trading at 29 satoshis.
In order to make the prediction, the twitter account uses a Sine Line, which measures the duration of the cycles.
6 of the 7 upward moves until now have respected this sine line as support during their upward moves. However, they all have had different magnitudes.
The current line would have DOGE increasing until January 2021.
Dogecoin Rate of Increase
The low in September 2019 was combined with both an oversold RSI value and a weekly bullish cross in the MACD.
This has only occurred three times before. All three times, the price began an upward move with a magnitude of 140, 355 and 1107%, respectively.
If the price were to increase the average of these three moves (534%), it would reach a high of 181 satoshis.
Using a fib retracement tool in the current correction, we find a target of 75 satoshis with the final fib level.
This target also coincides with the resistance area created by the previous high in December 2018 and April 2019.
However, this does not mean that the price will make an absolute high of 75 satoshis. Rather, it suggests that a retracement is likely if Dogecoin gets there.
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 courtesy of TradingView, Twitter.
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