The DOGE/USDC market is showing relative stagnation after three days in a short position. In this article, we will check whether this approach remains relevant and adapt our strategy.
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1. Analysis of the current trend
Current price: 0.24678 USDC
Variation 24h : +2.62%
High/Low 24h: 0.24782 / 0.23411
Moving Averages:
- MA(7): 0.25300 (short term)
- MA(25): 0.26846 (medium term)
- MA(99) : 0.34645 (long terme)
Technical indicators:
- RSI (6): 37.22 (near the oversold zone)
- MACD: -0.00157 (bearish dynamics)
- Volume: 42.60M DOGE (low bullish activity)
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2. Confirmation of the trend
Is there a short left?
- General trend still bearish: MA(7) below MA(25), confirming selling pressure
- MACD negative: The bearish dynamic remains active
- Low volume: Little buying pressure, making the rebound limited
- Key zone at 0.23411 USDC: If this support gives way, the decline could intensify
Getting out of shorts?
- RSI close to oversold: A technical rebound could occur
- If the price goes back above 0.25300 USDC, it would invalidate the bearish signal
- MACD close to a bullish crossover: A reversal is not excluded
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3. Trade Strategy and Management
Option 1: Keeping the shorts on
- Stop-Loss: 0.25600 USDC (security in case of reversal)
- Take-Profit 1: 0.24000 USDC (intermediate level)
- Take-Profit 2: 0.23411 USDC (last strong support)
Option 2: Invalidate the short and prepare a long
- If DOGE exceeds 0.25300 USDC with volume, close the short position
- Enter long if the breakout is confirmed with a stop at 0.24600 USDC
- Bullish target: 0.26846 USDC (MA25)
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4. New strategy: Double protection with two SLs
Advanced technique to automate risk management
Rather than waiting for the breakout to decide, we can place two Stop-Limit orders to capture a bullish or bearish movement automatically:
1. Stop-Limit Buy (Long)
- Trigger: 0.25300 USDC
- Purchase price: 0.25400 USDC
- SL de protection : 0.24600 USDC
- Take-Profit : 0.26846 USDC
2. Stop-Limit Wait (Short)
- Trigger: 0.23400 USDC
- Selling price: 0.23300 USDC
- SL de protection : 0.24100 USDC
- Take-Profit : 0.22000 USDC
This strategy allows you to capture a breakout in both directions while limiting the risk of invalidation.
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Conclusion
DOGE/USDC is still trading below resistance, and shorts remain in play as long as 0.25300 USDC does not give way. However, in the event of a bullish breakout, a reversal can be exploited with a well-framed long.
Things to watch out for:
- 0.25300 USDC for a short exit and a long transition
- 0.23411 USDC for confirmation of the decline and maintenance of the short
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This article is for educational purposes and does not constitute financial advice. Always do your own research (DYOR) before investing.