Dogecoin is providing the market participants with ample opportunities to profit from by participating in range trading. I have been maintaining that rallies up to 50 satoshis can be utilized to build short positions for a target of 47 satoshis, and as can be seen, the recent surge to 49.5 satoshis was quickly followed by a drop to the mentioned target.
Even with high volatility hitting the market, Dogecoin is unchanged from yesterday’s level of 47 satoshis.
An analysis of the 240-minute Dogecoin/Bitcoin price chart above tells of an extended sideways range which would continue to provide numerous trading opportunities to both buyers and sellers.
Dogecoin Chart Structure – Dogecoin is maintaining a wide trading range of 46.3-50 satoshis, where any approach towards the extremes can be utilized to build positions in the market. The levels near 49.5-50 satoshis are acting as strong supply zones while buying pressure is witnessed near 46-46.3 satoshis.
Bollinger Bands – The upper range of the BB has dipped to 48.5 satoshis amid repeated failure of bulls to sustain at higher levels. Further lowering of the upper range will result in increased pressure on Dogecoin. Following the lead of the upper range, the lower range has also dipped to 45.7 satoshis.
Relative Strength Index – The RSI indicator has witnessed a sharp decline from a 1-week high of 65 to 48.2204, indicating strong selling pressure near the higher levels.
From a technical viewpoint, it looks like the bulls and the bears are pretty comfortable with the current Dogecoin range. Traders can employ two strategies to reap huge benefits from the present scenario: buy on dips (when price approaches the floor value) and sell on rise (when price hits the ceiling), however, following the stop-loss is the key to minimizing the risks. Positions must be built keeping the personal risk appetite in mind. Volatility will continue to play an active role.
Even with high volatility hitting the market, Dogecoin is unchanged from yesterday’s level […]