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In Friday’s analysis on Bitcoin I mentioned that I would like to focus on gold today. However, when social media groups started asking questions about how to use the margin on Binance to buy Doge, I decided to do a brief analysis. Today’s analysis, however, is primarily a warning, because the Doge is a totally overdimmed shitcoin and it is certainly not reasonable to jump headlong into it.
Dogecoin and capitalization
New investors come to the crypt every day and know that the greed is really powerful for them. That greed completely obscures common sense and then there is room for fantasizing, how the Doge will be the new Ethereum. I do not mean technically, but that our shitcoin will overtake us in the capitalization of Ethereum.
Which means that after those crazy pumps, the Doge’s capitalization should inflate several times over. The truth is that they managed to overcome Bitcoin Cash and Litecoin. However, it is quite foolish to calculate that he will catch up with Ethereum. Capitalization would have to swell 7 times. And given the fresh inflation, something like this is hard to imagine.
During the last bull run, I saw that this fantasizing had a huge power over crowds of people, and one normally read that XRP would go to $ 20,000 in a few months. Indeed, a lot of people believed that, which is completely nonsense given the circulating XRP offer. The crypt market has been around for some time new paradigm and the question is how long can this phase last.
Notice for tomorrow’s video analysis:
During the second half of Sunday afternoon, I will release a video analysis on Bitcoin again. As soon as this happens, you will of course be notified. You can look forward to another analysis full of useful information, where we will explain important contexts that you will not learn from most other analysts. If you are give straight awayso that you do not miss the analysis.
Current situation at 1M TF DOGE / USD
Let’s start with the monthly graph, where I deliberately did not turn on the logarithmic graph, so that it is clear at first glance how extreme growth we are witnessing. Dogecoin has appreciated by almost 10,000% since the beginning of the year, which is completely insane. The volumes were huge and it is unbelievable how strong the demand for this shitcoin was.
From price relations 0.00x, the Doge moved up to 45 cents. If someone put $ 500 into this coin a few months ago, you can buy a smaller villa in Brno for a profit. But the reality is that the vast majority of people will sell much sooner, of course. It is even very rational sell when you have a profit of about 1,000%. If one wants more, one is already greedy. However, the paradox is that greed may have paid off here.
But the greed must not be extreme, because only a fraction of the profit of 10,000% can remain. By that I mean that making an ideal shot is simply not possible. Otherwise, as far as RSI indicator, so it shows almost 100 points, which you will not see in the charts every day. The market is brutally pumped and in case of collapse it will be very fast. It is not advisable to put your savings into something like this.
Current situation at 1D TF DOGE / USD
The daily graph is already with a logarithmic scale, so that we maintain a certain clarity. The first large pump took place at the beginning of the year, which lasted only two days. At that time, the appreciation was about 200%. This was followed by a correction that lasted almost a month. At the end of January, another two-day pump arrived, during which there was an increase of more than 1,000%.
If I remember correctly, then the primary reason was that Musk played with his Twitter. Musk makes a fool of himself, but I’d say he knew very well what he was doing and that no regulator would make him “these”. It can be assumed that he bought it for large sums and his own fans paid him the parade.
Holt probably has to make money on the side when his unprofitable business doesn’t work out for him. Anyway, after the second pump, it seemed for a while that it would burst completely. However, after a very quick correction of 75%, the market began to recover and after creating a new balance, we are witnessing another pump. Said equilibrium can be considered as a reaction area and once it was completed, it was time to fire.
In any case, the Doge made another few hundred percent, accompanied by huge volumes. Although they are not as big as the other pump, they were obviously enough. Anyway, the daily RSI peaks at 96 points and you the previous two pumps always ended at 90+ and the correction began with the generation of a new balance. Now you’re probably wondering if it’s possible for us to see the fourth pump.
If the Doge does not spill by more than 90% in a few days, it is possible to see another pump within a few weeks. But first a new balance must be established. However, a monthly RSI of almost 100 points may in itself indicate that a fourth rally is no longer possible. At least the conditions are not so friendly. But as I often say, we are never sure.
In conclusion
Perhaps it didn’t matter that today’s analysis was more of a story. I wanted to draw attention to the risks associated with the growing greed of retail investors. It’s not at all rational to put your savings into pumped-up nonsense like Dogecoin. However, if you like adrenaline and do not have gambling barriers, then on the contrary, you will be eliminated in the Doga. If you do not want to gamble, you better avoid the dog, because it can show sharp teeth.
ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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