Is it a good time to buy Dogecoin?
The answer to this question depends on what you want to buy Doge for. If you simply want to get involved in the community and use Doge coin to tip people online, then there is rarely a bad time to invest. The coin’s all-time high price was achieved in 2018 and was still under 2 cents, so you won’t have to break the bank to buy some Dogecoins.
However, if you are thinking of buying Doge as an investment, then you will want to consider the cryptocurrency markets more broadly. You can buy Doge at a very low price, but it’s a good idea to stay on top of our latest analysis to see if your coins are likely to rise to a higher price:
Dogecoin (DOGE) has advanced from $0.05 above $0.44 since the beginning of April, with the current price hovering around $0.27. The current trend of this cryptocurrency is still bullish, but when trading Dogecoin, you should be aware that the price could also weaken further in the coming days.
Fundamental analysis: Liquidity has risen sharply this April
The price of Dogecoin (DOGE) has spiked since the beginning of April, and this coin continues to trade in a buying zone. There is no risk of the trend reversing for now, but if the price falls below $0.20 again, it would be a strong “sell” signal and the next target could be around $0.15.
Dogecoin is a derivative of Luckycoin created by Jackson Palmer and Billy Markus. Dogecoin has one-minute block intervals, making it faster than other blockchains, while its high supply and low price made it easy to micro-tip content efficiently on social media.
Dogecoin has started to attract the interest of traders after Elon Musk said that the only thing that prevents this currency from becoming the “official currency of the Internet” is its high level of concentration among a few wealthy people.
Elon Musk also said that he bought Dogecoin for his son and invited major shareholders to sell a substantial amount of their DOGE stash in exchange for their full support. A small group of people own more than 50% of the entire Dogecoin supply, and this is one of the main reasons why this cryptocurrency cannot achieve widespread adoption.
“If the major Dogecoin holders sell most of their coins, they will get my full support. Too much focus is the only real problem,” said Elon Musk.
The liquidity of this cryptocurrency has increased dramatically this month and despite the current correction, Dogecoin continues to attract the attention of traders.
Technical Analysis: Dogecoin extended its correction from all-time highs above $0.44
The cryptocurrency market is still under pressure, the price of Dogecoin may weaken further in the coming days, and it may not be the best time to invest in this cryptocurrency.
Critical support levels are $0.20 and $0.15, $0.35, $0.40, and $0.45, they represent current resistance levels. If the price jumps above $0.35 in May, it would be a signal to trade Dogecoin (DOGE), and the first target could be around $0.40.
Breaking above $0.40 supports the continuation of the uptrend, and we have an open path towards the $0.45 resistance level. On the other hand, if the price falls below $0.20 again, it would be a strong “sell” signal, and we have the way open to $0.15.
Summary
The price of Dogecoin (DOGE) has been on the rise since the beginning of April, and despite the current correction, Dogecoin continues to attract the attention of traders. There is no risk of the trend reversing for now, but if the price falls below $0.20 again, it would be a strong “sell” signal and the next target could be around $0.15.
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