Dogecoin has an interesting and quirky history, created initially as a meme by the crypto community and eventually became a heavily traded currency with a daily volume of approximately 40 million. Its low value allows users to trade it more easily and as a result has become an incredible currency for day trading and this article aims to clarify why this statement.
The currency has appreciated by approximately 12% from the beginning of the year until the time this article is being produced, but the last few months have continued to fall following numerous valuations that peaked at 92%. The currency is having downward price adjustments. If it can revert upwards, the appreciation must exceed 15%.
It can be noted that dogecoin was starting a downtrend shortly before it was announced that it would be listed on binance, so we had a valuation of around 40%. Thus, for swing traders it can be concluded that the news may momentarily affect the behavior of the asset up or down giving a good opportunity to buy.
Now we come to the amazing dogecoin time chart. These very large sails have approximately 5% variation in each giving room for very high day trading or scalping profits by applying simple indicator combinations. Note for example that when using the bollinger band you can find points to negotiate when the sails go beyond the edges that serve as support / resistance.
It can be concluded then that dogecoin is an excellent cryptocurrency with a huge community that provides the currency with high trading volatility and because of its low purchase value makes this trade accessible to anyone. Another thing that may work well is to place a bot to trade this currency pair using the bollinger bands as an indicator (I teach you how to do this in this article), as you can notice very large volatility in the short period of time inputs and Exits that the bot would make would be very fast bringing high profits.
Thank you for reading :D