$DOGE
#Dogecoin #Crypto #Trading #Investing #Cryptocurrency #MarketTrends #Altcoins #FinancialAnalysis
Will News of Dogecoin’s 20-Month SMA Influence Its Future?
Indicator That Predicts Dogecoin’s Trajectory
According to market expert Cantonese Cat, the 20-month simple moving average (SMA) is a crucial indicator for Dogecoin’s future movements. Currently, Dogecoin is trading above this average, established at $0.1751. Historically, Dogecoin has tested this average three times since 2014, each resulting in significant price rallies.
Historical Impact of the 20-Month SMA
The first significant test occurred in March 2017 when Dogecoin touched the SMA at $0.00020, followed by an explosive 9,000% increase. Another touch in late 2020 preceded a massive 34,500% jump. Most recently, in August last year, after touching the SMA, Dogecoin surged over 480%. Cantonese Cat suggests that maintaining above this average predicts further upward movement.
Risks of Falling Below the SMA
However, a drop below $0.175 could jeopardize Dogecoin’s structure, potentially triggering a prolonged downtrend similar to past declines in 2018 and 2021.
Broader Market Conditions
Kevin, another analyst, examines the broader crypto market excluding Bitcoin, known as “TOTAL2”. This index shows a seven-year rising channel and is currently forming an ascending triangle. A breakout above the triangle could lead to substantial market growth, impacting altcoins like Dogecoin. Conversely, failing to break out could result in a bearish scenario for Dogecoin.
Potential Outcomes
Kevin predicts potential growth targets for TOTAL2, which if achieved, could bolster Dogecoin’s value, provided that macro-liquidity and regulatory environments are favorable. On the other hand, failure to achieve these targets could see Dogecoin lose its historical support level.
Current Market Position
At present, Dogecoin trades at $0.189. The forthcoming monthly close will be critical in determining whether Dogecoin will continue its ascent or retreat.
For more insights and updates, visit our [crypto section](https://financier.news/category/crypto/) and explore more about cryptocurrencies on [Binance](https://www.binance.com/).
Comments are closed.