Crypto Traders Are Revisiting Dogecoin (DOGE) – Here’s Why
When memecoins go parabolic, it's usually a sign of a market high and a warning that investor excitement has peaked. The market saw similar speculative rage in the 2020-2021 bull market as Dogecoin (DOGE) chased $1, while Shiba Innu (SHIB) rallied by tens of thousands of percentage points and the unrealized token price hit six to seven figures. .
Although only up 13.6% for the year, DOGE's 33.2% gain last month has put the asset on the radar of some analysts.
Take, for example, crypto trader Tony “The Bull”, who pointed out that the price of DOGE has entered the one-month parabolic SAR indicator, a move that the trader says was followed by an earlier 23,000% rally.
For traders using technical analysis, the parabolic SAR is generally used to indicate an asset's “stop and reversal” signals. In short, it is used to determine the price level at which the asset will stop in its current direction and initiate a trend reversal.
This dog is ready to bite #Dogecoin accounts 1M Parabolic SAR.
Last signal $DOGE rallied 23,000% pic.twitter.com/ZGr9eFCaea
— Tony “The Bull” (@tonythebullBTC) November 16, 2023
Traders point to DOGE's Fibonacci levels as a guide to where the price may be headed in the medium term. Referring to the monthly timeframe, $0.12 is identified as the medium-term target at the 0.618 Fib level, while the $0.23 Fib level suggests the end of the current DOGE swing trade.
Related: Price Analysis 11/20: SPX, DXY, BTC, ETH, BNB, XRP, SOL, ADA, DOGE, LINK
Trading volumes and open interest were another pair of significant metrics that traders boosted last week as DOGE open interest rose and trading volumes hit a six-month high.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
