Introduction

This report provides an in-depth analysis of the cryptocurrency Dogecoin (DOGE) based on the latest data from 20 June 2023. The analysis includes a review of the current price, volume, bid/ask prices, day’s range, technical indicators, and moving averages.

Price and Volume Overview

As of 7:33 a.m. UTC on 20 June 2023, on Binance, Dogecoin (DOGE) is trading at $0.062160, up by $0.000140 (+0.23%) from the last real-time data. The volume stands at 325,512,796 DOGE. The bid and ask prices are $0.062150 and $0.062160, respectively. The day’s range has been between $0.061510 and $0.062850.

Source: TradingView

Technical Indicators

Technical indicators are statistical tools used by traders and investors to predict future price movements and market trends.

Here’s a detailed breakdown of the technical indicators for Dogecoin (DOGE):

  • RSI(14): The 14-day Relative Strength Index is 48.298, indicating a neutral position. The RSI measures the speed and change of price movements on a scale of 0 to 100. Traditionally, the asset is considered overbought when the RSI is above 70 and oversold when it’s below 30. In this case, DOGE is neither overbought nor oversold, suggesting a balance between buying and selling pressures.
  • STOCH(9,6): The Stochastic Oscillator is 31.517, indicating a sell position. This momentum indicator compares a particular closing price of the asset to a range of its prices over a certain period of time. The current value suggests that DOGE is closer to its lows than its highs, which is typically viewed as a bearish signal.
  • STOCHRSI(14): The Stochastic RSI is 9.433, indicating an oversold condition. This is a technical momentum indicator that compares the level of the RSI to its high-low range over a set time period. An oversold condition could indicate a buying opportunity as the price might rebound soon.
  • MACD(12,26): The Moving Average Convergence Divergence is 0.000, indicating a neutral position. The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD line crossing above the signal line can be a bullish signal, and when it crosses below, it can be a bearish signal. In this case, the MACD line is on the signal line, indicating a neutral position.
  • ADX(14): The Average Directional Index is 21.271, indicating a neutral position. The ADX is used to measure the strength or weakness of a trend, not the actual direction. Values below 20 are often associated with non-trending markets, and values above 25 may indicate a trend.
  • Williams %R: The Williams %R is -63.462, indicating a sell condition. This momentum indicator measures overbought and oversold levels. Readings range from 0 to -100, with -50 as the middle line. Readings above -20 are considered overbought, and readings below -80 are considered oversold. The current reading suggests that DOGE is in a sell condition.
  • CCI(14): The Commodity Channel Index is -120.1974, indicating a sell position. The CCI is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold. A CCI above 100 may indicate an overbought condition, while a CCI below -100 may indicate an oversold condition.
  • ATR(14): The Average True Range is 0.0003, indicating less volatility. The ATR is a technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for that period. Lower values typically represent less volatility and more stable price movements.
  • Highs/Lows(14): The value is -0.0000, indicating a sell position. This indicator is used to identify the highest and lowest prices for the asset over a particular period.
  • Ultimate Oscillator: The value is 33.520, indicating a sell position. This is a technical indicator that is used to measure momentum across multiple timeframes. A value below 30 often indicates an oversold condition, while a value above 70 indicates an overbought condition.
  • ROC: The Rate of Change is -0.113, indicating a sell position. The ROC is a momentum oscillator, which measures the percentage change between the current price and the n-period past price. A negative ROC indicates a bearish signal, suggesting that the price is decreasing.
  • Bull/Bear Power(13): The value is 0.0002, indicating a buy position. These indicators measure the balance of power between bulls (buyers) and bears (sellers). A positive value indicates that bulls are in control, while a negative value indicates that bears are in control.

Here is a summary of the technical indicators in table form:

The technical indicators summary shows one buy signal, six sell signals, and three neutral signals, leading to a summary action of “STRONG SELL”.

Moving Averages

Moving averages are a type of data smoothing technique that analysts use in technical analysis to identify trends in a set of data, such as stock prices. They help to reduce the noise and fluctuation in price data to present a smoother line, making it easier to see the overall direction or trend.

There are several types of moving averages, but two of the most common ones are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).

  1. Simple Moving Average (SMA): The SMA is calculated by adding the prices for a certain number of periods and then dividing by that number of periods. For example, a 5-day SMA would add the closing prices for the last five days and then divide by five. The SMA gives equal weight to all the data points in its calculation.
  2. Exponential Moving Average (EMA): The EMA is similar to the SMA but gives more weight to recent data. This means it responds more quickly to recent price changes than the SMA. The calculation of the EMA is a bit more complex than the SMA, involving an exponential smoothing factor to give more weight to recent prices.

The significance of different period moving averages (like 5-day, 10-day, 20-day, 50-day, 100-day, and 200-day) lies in the timeframe that traders are interested in:

  • 5-day, 10-day, and 20-day moving averages are often used for short-term trends. They respond quickly to price changes and are useful for traders looking to take advantage of short-term price movements.
  • 50-day and 100-day moving averages are more medium-term. They are less sensitive to daily price fluctuations and provide a clearer picture of the medium-term trend.
  • 200-day moving average is a long-term trend indicator. It’s less sensitive to daily price fluctuations and provides a clearer picture of the long-term trend. Many traders consider a market to be in a long-term uptrend when the price is above the 200-day moving average and in a long-term downtrend when it’s below.

It’s important to note that moving averages are lagging indicators, meaning they are based on past prices. They can help identify a trend but won’t predict future price movements.

Here’s a detailed breakdown of the moving averages for Dogecoin (DOGE):

  • MA5: The 5-day SMA is $0.062196, indicating a sell position. The 5-day EMA is $0.062197, also indicating a sell position. This suggests that the price is currently below the average of the past five days, indicating a bearish trend in the short term.
  • MA10: The 10-day SMA is $0.062291, indicating a sell position. The 10-day EMA is $0.062214, also indicating a sell position. This suggests the price is below the average of the past ten days, indicating a bearish trend in the medium term.
  • MA20: The 20-day SMA is $0.062199, indicating a sell position. The 20-day EMA is $0.062212, also indicating a sell position. This suggests that the price is currently below the average of the past twenty days, indicating a bearish trend in the longer term.
  • MA50: The 50-day SMA is $0.062208, indicating a sell position. The 50-day EMA is $0.062180, also indicating a sell position. This suggests that the price is currently below the average of the past fifty days, indicating a bearish trend in the longer term.
  • MA100: The 100-day SMA is $0.062137, indicating a buy position. The 100-day EMA is $0.062056, also indicating a buy position. This suggests that the price is currently above the average of the past hundred days, indicating a bullish trend in the longer term.
  • MA200: The 200-day SMA is $0.061720, indicating a buy position. The 200-day EMA is $0.062691, indicating a sell position. This suggests that the price is currently above the average of the past two hundred days, indicating a bullish trend in the longer term.

Here is a summary of the moving averages in table form:

The moving averages summary shows three buy signals and nine sell signals, leading to a summary action of “SELL”.

Conclusion

The analysis of Dogecoin (DOGE) for 20 June 2023 presents a bearish outlook, with both the technical indicators and moving averages leaning towards a “Sell” position.

The technical indicators show a strong sell sentiment with six out of ten indicators suggesting a sell. The oversold condition indicated by the STOCHRSI(14) suggests that the asset is currently being heavily sold, which could lead to a potential price correction in the future. However, the less volatility indicated by the ATR(14) suggests that there could be less significant price movements in the near term.

The moving averages, which are more focused on the trend and less on the daily volatility, also suggest a bearish outlook. The majority of the moving averages, including the short-term (5, 10, 20, and 50-day) averages, indicate a sell position, suggesting a downward trend. However, the 100-day and 200-day simple moving averages indicate a buy position, suggesting that the longer-term trend may still be bullish. This could indicate some potential for recovery in the longer term.

It’s important to note that while the current market sentiment for Dogecoin (DOGE) is bearish, market conditions can change rapidly. The high volatility of the cryptocurrency market means that prices can move significantly in a short period. Therefore, investors should keep a close eye on market developments and adjust their strategies accordingly.

As always, while this analysis provides an overview of the current market conditions for Dogecoin (DOGE), it’s crucial to conduct your own research and consider your personal risk tolerance before making any investment decisions.

Featured Image Credit: Photo / illustration by “Dylan Calluy” via Unsplash