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Today, we will discuss Dogecoin. Dogecoin was once a king, then faced disdain, and has since risen again, now favored by global giant Elon Musk. Every move Musk makes can trigger significant fluctuations in Dogecoin, making it widely known. So, in the upcoming trends, can Dogecoin continue its past glory? What factors and logic influence its price movements?

Let’s review the historical trends of Dogecoin. In 2020, Dogecoin experienced explosive growth during the last bull market, soaring from a low of 0.001 to a high of 0.73, an increase of 73 times. However, its current price has dropped to 0.05, currently at 0.11. Can it achieve greatness again? At the beginning, we mentioned the K-line price and the price trends of the coin; the K-line patterns and the subsequent price movements depend on the internal and external environment at that time. The causes at that time and the external factors will determine the price trend of Dogecoin. The current price trend, K-line patterns, and future movements are determined by the current causes and external environment.

This time, Dogecoin nearly replayed history, but the past is gone, and the present is now, which cannot be completely replicated. In 2020, when Dogecoin's price was 0.001, the weekly chart created four peaks at its lowest point. During this process, Dogecoin's pattern exhibited characteristics of multiple tops. Once it breaks through the resistance around 0.050, it will surge like a runaway horse, initiating a sustained upward trend. In the previous market, Dogecoin experienced multiple spike phenomena, including in January and February 2020, July, and 2021. Its price saw rapid weekly spikes, with significant amplitude. After three weekly spikes, it ultimately achieved a breakthrough. Therefore, investors engaging in breakout trading are often disturbed by this market behavior, and the future may be similar. It is difficult to determine which actions are genuine and which are false. Thus, when buying a certain coin, one must be particularly cautious and avoid rushing into heavy positions or chasing highs and cutting losses. What you consider a high point may just be a trial position, a strategy to resolve the trapped chips above, and it is very likely to fall back to previous lows to attract you to enter. After that, once it breaks 0.05, Dogecoin's price reached a maximum of 0.073995 within a few months, marking a historical high. The watershed lies in breaking through this position, becoming a new breakout point, that is, breaking through the previous significant pressure zone or key level. Although Dogecoin released a massive volume after reaching a historical high, during this phase, it formed a bearish engulfing and hammer star pattern. If such a special hammer star K-line combination and pattern appear at the top, along with increased volume, it usually indicates that the chips are loosening. From the weekly chart, one should pay attention to reducing positions or taking profits. Although the market may rebound strongly again or even reach new highs, the momentum is difficult to sustain as before. Clearly, there are suspicions of the main force unloading, which should be noted afterward.

Dogecoin experienced a decline in the subsequent market for one to two years. Its last breakout point was at 0.05. At this position, if the price falls but can eventually return to 0.05 without breaking the breakout point, this breakout point shows that 0.05 has a tenfold space compared to 0.005. The last breakout occurred here, and the retest point is also here. If this position is broken, the subsequent space will expand significantly, and there will be a lack of support. Therefore, after gaining effective support at 0.05, Dogecoin began to consolidate. During this process, we can see a familiar price pattern with several peaks in between. For this breakout, we recorded a video focusing on whether it would continue the upward trend. But the fact proved that the price trend at that time and the trend after the breakout depended on the internal and external environment at that time. At this moment, its price did not develop according to the previous pattern. We know that Bitcoin has been consolidating and slowly declining at high levels since March, without an effective breakthrough. Therefore, altcoins are also unlikely to see significant increases. The fact proved that the price eventually fell back and broke 0.106.

So, how should we operate Dogecoin currently? If we can grasp this key point or catch the main force's trading habits, Dogecoin will bring good returns and also hint at new entry points. From the trend, we notice a problem. In October 2022, Dogecoin's last long bullish candle with massive volume occurred, and after reaching a new high, it began to fall back, approaching the breakout point and previous low point. This situation has also occurred in the past. Additionally, in February 2024, Dogecoin again released massive volume, and after a long bullish candle, the second week also saw massive volume, forming a propeller pattern, indicating that the chips are loosening, with significant volatility. This situation is not a good sign, indicating that the main force is taking action. After that, the market began to fall back, touching the breakout point.

Therefore, the entry point for Dogecoin should be when it is infinitely close to that position, which can be used as a strategy for gradual entry. If considering investing funds, one can enter in batches as it approaches that position. If that position is broken, it will test the previous low point. The 0.10 position, that is, the area above 0.085 to 0.010, is the first layout area. If this area is broken, the second layout area will be here.

Thus, trading has no fixed rules, and money management methods vary from person to person. Why is there a saying about establishing a trading system that suits oneself? As for where Dogecoin will head in the future, we can discuss that again. That’s all for today’s sharing, see you next time.

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