Hello friends and welcome to my analysis of Dogecoin. Taking a look at the 1 day candles, you can see that Dogecoin has retraced considerably, at one point reaching the 78.6% retracement for a brief moment before recovering above the 68% fib level support zone. Important to note here, is the overall trend line serving as support for Doge during in recent failed attempt at a breakout. While Doge has retraced considerably, one must keep in mind the overall state of the Altcoin market due to the fluctuations of BTC. Taking a look at the previous rally, it is important to note the two circled areas of increased strength which allowed Doge to reach its ATH. While previous performance is by no means an absolute confirmation of future performance, there are many reasons to consider a possible second breakout from this coin.
1) The retracement of Dogecoin was in part largely impacted by BTC fluctuations. If you have been paying attention at all to the most recent price action of the Altcoin market, in general most coins have retraced considerably in the ensuing bloodbath. 2) While purely speculative, February 14th, marks the beginning of the year of the Dog. If there is any moment in time for Dogecoin to make a run to break its current ATH, the time is now. 3) Confirmation of work alongside Etherium to solve scalability issues. While it is difficult to know exactly how this will play out in the long term, this gives insight to the usability of this coin. twitter.com/avsa/status/964564072065880064 4)Personal pure speculation. If you had been watching the most recent price action of coins such as XLM and XRP, they recently surged in price and volume due to rumors that they may be added onto coinbase, until the CEO of coinbase shut down such rumors. While we do not know which coins will be added in the future, I dont mind taking a small risk on a coin that has potential as a candidate. Dogecoin has the cheapest(percentage) fee involving transfers of digital currency across exchanges. Thinking into the mind of a multimillion dollar exchange such as coinbase, there is plenty of upside for coinbase adding such a coin in the near future.
I do not make these statements as truth, but rather a personal opinion on the future potential of the market.
As a short term target, look for a breakout near 93 satoshi flying towards the 1.6 fib extension of 174
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Upward trendline is holding, if I was confident before that a breakout could occur, I am more confident now. Considering how awful the entire market is doing, look for a strong breakout once BTC stabilizes
I hope you're right bought myself 100k of them at 55 sat :)
P1ratekingLuffy
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@JoellekeB, Lets hope im right for the both of us. Doge's had a pretty strong attempt at a recovery, which was shut down by BTC. Youre already in the green, enjoy the profits. FYI if youre feeling frisky, you can margin on POLO, only do this of course if you have enough in the exchange in reserve to give you a nice cushion