I am currently monitoring the price action of Doge/USDT, and I see that the price is trading around 0.19882. On the chart, I notice that the price is approaching the upper border of the Bollinger Bands, which means that the price may be in an overbought area. There may be some selling pressure in this area if the price cannot break this upper border strongly.
But at the same time, the Relative Strength Index (RSI) is showing a reading of around 59.81, which is positive but not yet in the full overbought zone, meaning that I still have some bullish momentum to work on, which could prompt me to consider entering a long trade if this momentum continues.
My eyes also turn to the MACD indicator, where I see a positive crossover between the lines, giving me an additional indication that the upside move may continue for a longer period.
I am considering entering a long trade, and I might open it if I see the price settle above 0.20. But I will be very careful, and place a stop loss at 0.19 to avoid any sudden reversal. My initial target will be at 0.22, and if the price reaches there, I will consider taking profits.
But if I notice that the price fails to break the 0.20 area and starts to decline, then I might consider entering a short trade. I will wait for confirmation from the candles of the bearish reversal, and I will target the 0.19 level for profit, with a stop loss close to 0.21 to avoid big losses.
At the moment, I am optimistic but cautious. I will wait for some confirmation before making my final decision, but the trend looks positive according to the indicators.
