In the year 2021, Dogecoin (DOGE) is a very popular cryptocurrency. When the price went from $0,01 early in the year to $0,7 near the high in May, it was one of the highest scoring crypto assets with a large marketcap.
Elon Musk, the CEO of Tesla, was intrigued by DOGE. He mentioned Dogecoin as his preferred cryptocurrency in numerous tweets, even more than Bitcoin. His tweets moved the price of DOGE up and down multiple times, but it is presently down with the sector.
Other coins based on the dog meme witnessed a spike in addition to DOGE. Even if you had DOGE until now, you would have made a significant profit if you merely held it.
DOGE is one of the newest cryptocurrencies available on BigoMex as options trading. With options, you can benefit whether the price rises or falls, as it has in recent weeks and months.
Is DOGE a profitable trade right now?
Jackson Palmer created Dogecoin in 2013. The coin was created as a joke to poke fun at the cryptocurrency sector at the time. DOGE is inspired by the Shiba Inu meme, which features a popular dog breed's face.
Dogecoin's technology is based on Litecoin. DOGE continues to leverage Litecoin's Scrypt-based mining method, allowing Litecoin miners to assist Dogecoin's security as well.
The main distinction between Dogecoin and Litecoin is that DOGE has no production limit. Bitcoin has a 21 million coin maximum supply, Litecoin has an 84 million coin maximum supply, and Dogecoin has an endless inflation schedule.
Despite the fact that the technology is built on Litecoin, DOGE has seen virtually little fresh development. Jackson Palmer is no longer connected with the project in any way. Nonetheless, some engineers update the Dogecoin technology on a regular basis.
DOGE's price is heavily impacted by speculation because it was created as a joke coin with no significant development. The price increased by 70 times in 2021 alone, making it a very lucrative trade for many traders.
A few high-profile traders shorted DOGE while the price was high, and they profited handsomely as a result of their analysis. Using BigoMex options trading, you can short DOGE.
Interestingly, the price of DOGE/BTC has followed a pattern throughout time. Since 2014, there has been a long-term support at 20-30 sats that has become a bouncing point practically every year.
A basic trade would be to buy when DOGE/BTC reaches 20-30 sats and sell when the price hits your take profit level. With the price currently hovering around 600 sats, any traders that accumulated at the long-term support are in the black.
DOGE/BTC now has 600 sats of local support. Traders looking for long-term support at 20-30 sats may have to wait a long time if it ever hits that level again.
Given that the market is in a bear phase, it's a smart idea to hold off on putting a long or short order on Dogecoin until a clear direction emerges.
