Is DOGE in a "bubble"?
Despite what many may say negatively in the past few days as DOGE is one of the few alts to rise, DOGE at least has had quite a showing for bringing in some positive sentiment during a BTC drop as well as introducing many folks to cryptocurrency in the past few months.
That being said, for anyone curious about the "bubble" possibilities of DOGE, I just wanted to mention a few key points about the current price action as it relates to a typical bubble formation (as it looks very familiar, at least in my opinion, to many BTC chart setups from the "bubble" years):
1) DOGE was showing some expected bearish divergence before capitulating to a drop
2) The initial drop was almost precisely near the 61.8% Fibonacci level
3) Upon retracement back upward, it is nearing once again the 61.8% Fibonacci level if it is to reach near .365 USD then drop afterward
Although the above can be "bubble-like" conditions can be stated for many alts, I just wanted to mention that if DOGE is not able to continue upward, this indeed could become a bubble situation, after which there is a possibility of a retracement to near 85% for the longer term trend. These moments usually drag on with lots of hope and denial (googling "crypto bubble chart" brings up many of these examples). I suppose time will tell if this is the current case for DOGE to be finishing a bubble or if Elon's twitter will continue to propel the price to further levels. I for one am at least am hoping that .365 USD might be a year long end (see what I did there?) to how noisy the news and trolling in chat has been lately about DOGE, but I suppose we shall see. But as to all those who "raked it in" during the jump, good for you all! In the meantime, you stay classy dogecoin!
That being said, for anyone curious about the "bubble" possibilities of DOGE, I just wanted to mention a few key points about the current price action as it relates to a typical bubble formation (as it looks very familiar, at least in my opinion, to many BTC chart setups from the "bubble" years):
1) DOGE was showing some expected bearish divergence before capitulating to a drop
2) The initial drop was almost precisely near the 61.8% Fibonacci level
3) Upon retracement back upward, it is nearing once again the 61.8% Fibonacci level if it is to reach near .365 USD then drop afterward
Although the above can be "bubble-like" conditions can be stated for many alts, I just wanted to mention that if DOGE is not able to continue upward, this indeed could become a bubble situation, after which there is a possibility of a retracement to near 85% for the longer term trend. These moments usually drag on with lots of hope and denial (googling "crypto bubble chart" brings up many of these examples). I suppose time will tell if this is the current case for DOGE to be finishing a bubble or if Elon's twitter will continue to propel the price to further levels. I for one am at least am hoping that .365 USD might be a year long end (see what I did there?) to how noisy the news and trolling in chat has been lately about DOGE, but I suppose we shall see. But as to all those who "raked it in" during the jump, good for you all! In the meantime, you stay classy dogecoin!
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