When meme coins go parabolic, it’s usually a sign of a market peak and a warning that investor excitement is at its peak. The market experienced a similar speculative frenzy during the 2020-2021 bull run, when Dogecoin (DOGE) chased $1, Shiba Inu (SHIB) gained tens of thousands%, and NFT prices hit dizzying six to seven figures High position.
Although DOGE is only up 13.6% this year, last month’s 33.2% gain has put the asset on the radar of some analysts.
Take cryptocurrency trader Tony “Bull” for example. point out DOGE prices bounced back to the one-month Parabolic SAR indicator, which the trader said followed a move that subsequently rallied 23,000%.
For traders using technical analysis, the Parabolic SAR is often used to identify “stop loss and reversal” signals for an asset. Simply put, it is used to determine the price level at which an asset can stop in its current direction and begin a trend reversal.
This dog is ready to bite #Dogecoin Tag 1M Parabolic SAR
The last signal was generated $DOGE 23,000% rebound pic.twitter.com/ZGr9eFCaea
— Tony “The Bull” (@tonythebullBTC) November 16, 2023
Traders also point to Dogecoin’s Fibonacci levels as a guide to medium-term price direction. Citing the monthly time frame, the 0.618 Fib level of $0.12 has been identified as the medium-term target, while the 1.618 Fib level suggests $0.23 as the end point for the current DOGE swing trade.
related: Price Analysis 11/20: SPX, DXY, BTC, ETH, BNB, XRP, SOL, ADA, DOGE, LINK
Volume and open interest were another noteworthy pair of metrics traders watched last week, as DOGE open interest surged to a 2-month high and trading volume hit a 6-month high.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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