The market is never short of opportunities; what it lacks is patience and calm judgment.
Good morning, crypto friends! Today is another day dominated by DOGE news. As an old trader who has weathered the storms with Dogecoin, I must say this trend truly evokes mixed feelings. Looking at this candlestick chart, amidst the alternating red and green, our emotions are also fluctuating.
Technical analysis: Finding direction in volatility
From today’s 4-hour chart, the DOGE/USDT price is fluctuating between $0.223 and $0.228, with the MA moving average system showing a typical confluence state. The 5-day, 10-day, and 30-day moving averages overlap around $0.225, which is a typical signal of unclear direction. The MACD indicator has insufficient momentum above the zero axis, and the RSI remains in the 52-56 range, not giving clear overbought or oversold signals. In this situation, experienced players understand—the market is waiting for a 'breaking point'.
The trading volume has remained low, with only $120 million in the last 4 hours, less than one-third of the previous peak. This situation is like 'loud thunder and little rain'; market sentiment is still there, but the real buying power has significantly diminished.
Today's hot topic: Musk speaks again, what is the impact?
Just now, Elon Musk posted a Dogecoin-themed 'Shiba Inu riding a rocket' meme on X (formerly Twitter) with the caption: 'Faith is necessary, what if it happens?' This news instantly sparked heated discussions in the community, with DOGE's price quickly rising from $0.224 to $0.228, but it fell back below $0.225 after 15 minutes.
To be honest, this is not the first time Musk has 'donated' attention to Dogecoin this year. Remember when he announced in 2021 that SpaceX would accept Dogecoin payments, and the price skyrocketed from $0.15 to $0.74, an increase of over 300%! But this time, the market reaction was noticeably lukewarm, why?
I believe there are two reasons:
Firstly, the market has developed immunity to Musk's 'rhetoric';
Secondly, the current macroeconomic environment does not support a significant rise in cryptocurrencies. The Federal Reserve continues to raise interest rates, global stock markets are volatile, and investors tend to hold cash rather than high-risk assets.
Sharing personal trading experiences.
Speaking of this, I can't help but recall a trade from last week. Seeing DOGE stabilize at $0.218, I took a small position (0.3 BTC) at $0.221, hoping to replicate last year's explosive growth. Who knew after buying, the price briefly spiked to $0.226 before turning down, triggering my stop loss at $0.225, resulting in a loss of about 3% of my capital.
This made me deeply realize: in the current market environment, blindly chasing prices will only put you in a passive position. Instead of anxiously staring at the market every day, it’s better to patiently wait for a real trend to establish.
Market outlook: How to cope with the volatile market?
In response to the current volatile market, I have the following suggestions:
Control your position: It is recommended to use less than 30% of your total position for such volatile markets, with 70% or more held in cash.
Set strict stop losses: Whether going long or short, the stop loss must be placed outside the volatile range.
Focus on breakout direction: If the price can effectively break through the $0.23 resistance level and hold above it, consider taking a small position; conversely, if it falls below the $0.22 support, the short-term trend will turn bearish.
Avoid frequent trading: In such a market, frequent trading will only increase transaction fees and the likelihood of mistakes.
Do you think DOGE can break through $0.25 in the next two weeks?
What do you think about this DOGE trend, everyone? Should we continue to 'lie flat' between $0.22 and $0.23, or are we gearing up for a breakout? Feel free to share your thoughts and strategies in the comments!
Remember, in the crypto space, longevity is the hard truth. No matter how the market changes, preserving your capital is always the top priority!
This article is for reference only and does not constitute investment advice. The cryptocurrency market is extremely risky, please invest rationally and according to your ability.
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