Dogecoin has been quiet for the last couple of weeks, as we are hanging around the $0.13 level, as the market simply is looking for some type of direction. After all, the market tends to move more or less on momentum, and as there is no man-to-man crypto overall, there certainly will not be much momentum in Dogecoin. Yes, recently we had seen a little bit of a spike towards the $0.20 level as Elon Musk tweeted that Tesla is going to start taking Dogecoin as payment for their cars.
This is a kind of nonsense that tends to have Dogecoin spiking, because quite frankly it is difficult to imagine a scenario where a lot of people are going to be taken this option. The idea of course is that we are starting to see more adoption, and therefore the idea is that it should become more valuable. That being said, the fact that Tesla is not exactly mainstream, and of course we have previously seen Tesla talk about taking Bitcoin, only to turn around and come out against it. Where they are with Bitcoin at the moment I do not necessarily know, but it seems to be something that goes back and forth on the whim of Mr. Musk.
Longer-term, it looks as if Dogecoin is going to go looking towards the $0.10 level, which I think could be somewhat important due to a psychological standpoint. Whether or not that holds will almost certainly depend on Bitcoin, as the rest of the crypto markets move based upon what that market does. Until Bitcoin turns around and goes higher, Dogecoin does not stand much of a chance although the occasional “pump and dump” might come along with some type of random tweet, etc.
The 50 day EMA sits just above the $0.17 level, just as the 200 day EMA sits just below the $0.20 level. Both are sloping lower and of course we have had the “death cross” form, when the 50 day EMA crosses below the 200 day EMA. That is a very negative signal for longer-term traders, but it is a little bit late to use that as an entry signal. It does suggest that we have plenty of negativity in this market, and therefore I think it should continue unless of course it gets help from the outside.
