The Dogecoin market fell on Tuesday to reach the $0.10 level, an area that would obviously attract a certain amount of attention, as these markets do tend to pay close attention to these round numbers. That being said, we have bounced from that area, which is a sign of the market trying to stabilize.
That being said, Dogecoin is what is known as a meme coin, meaning that it has no real use. There are a handful of places around the world that would take it as cash, but really at this point it is more or less driven by retail meme-based nonsense. That being said, you can still make money trading it and that is what I am focused on. If we break above the top of the candlestick, it is very possible that we could go looking to the 50-day EMA, which is at the $0.1365 level.
On the other hand, if we were to break down below the $0.10 level, it could have a major effect on the market, unwinding it down to drastically low levels. It is worth noting that Bitcoin did try to save itself at the $30,000 level, but if Bitcoin breaks down below $30,000, it is difficult to imagine that some of the smaller meme coins will do very well. At that point, I think Dogecoin will drop below $0.10 and goes much lower given enough time. In that scenario, Dogecoin could drop down to five cents, or perhaps even lower than that.
The best-case scenario is probably going back and forth in the short term, trying to stabilize a bit. The stabilization of Dogecoin is the first step in trying to turn things around, but it will need a certain amount of external pressure to make this happen. Right now, there seems to be a real lack of interest when it comes to cryptocurrency in general, so obviously, a smaller market like Dogecoin is going to suffer. The traders out there that are looking for a longer-term “buy-and-hold” opportunity should have plenty of time to get involved, so at this point, I do not necessarily think it is worth trying to get overly deep in this market, but if we see a change in the overall attitude of crypto, it would not take much to send Dogecoin much higher.
