Move over Elon Musk, it seems we have another Dogefather in town. Billionaire Mark Cuban has been bullish on Bitcoin and crypto currency in general. Recently, he made big comments directed to what some call, a meme coin, Dogecoin.
Dogecoin was up 10% on Monday’s trading. Today, it is down -3.25% but is still up 25.89% in seven days. Dogecoin is the seventh largest cryptocurrency by market cap with a cap of $42,421,525,913.
Crypto’s have all been on a tear this past weekend. Bitcoin still leads them, so I would still primarily focus on Bitcoin for technicals. The other crypto’s will follow. In yesterday’s Market Moment, I covered XRP but also analyzed Bitcoin’s charts. The major support level mentioned is still holding…and being retested right now!
Back to Dogecoin. Mark Cuban had some nice things to say about Dogecoin. Mark Cuban told CNBC:
“the community for doge is the strongest when it comes to using it as a medium of exchange. The point about doge that people miss is that doge’s imperfections and simplicity are its greatest strengths. You can only use it to do two things: Spend it or HODL it. Both are easy to understand. And it’s cheap to buy. Which makes it a community anyone can join and enjoy.”
Elon Musk tweeted out that he agrees, and has been , “saying this for awhile”. Musk also tweeted that he has been working with Dogecoin developers to improve system transaction efficiency. The goal is to make Dogecoin easy enough that hodlers can use it to buy a cup of coffee.
Musk also noted the irony: a coin which began as a meme and a joke, becomes the real currency. Fate loves irony.
Both Mark Cuban and Elon Musk now own Bitcoin, Ether, and Dogecoin. But Cuban himself personally owns less than $500 ($494) in Dogecoin. His Dallas Mavericks team owns more. Back in March, his team became the first NBA team to accept Dogecoin for merchandise and tickets AND Cuban revealed the Mavericks will be offering special pricing for those paying with Dogecoin.
The catalyst from the Elon Musk side? SpaceX’s DOGE-1 mission to the moon early next year.
Technical Tactics
Some of you might be laughing at all of this. I understand. However, I approach this as a trade. To be honest, I remain bullish the crypto currency space as a way out of fiat currency. The major coins will have a bid, but I think even alts like Doge will see the same in sector strength. The major danger is government regulations.
Barring that, we rely on the technicals. We trade the markets we see, not the ones we hope/want to see.
Dogecoin Broke an Important Technical Level
The last time I looked at Dogecoin, I mentioned all the bullish confluences indicating a move higher. The trendline, the basing pattern, even the 4 hour head and shoulders pattern. The first target was resistance at around the $0.29-$0.30 zone. We hit it. No. We penetrated it!
Crypto’s have taken out important resistance zones, and Dogecoin is one of them! What next you say? Well, as all breakout structures go, what was once resistance now becomes support. Price can pullback to retest the $0.30 zone, and as long as we remain above it, the bull trend remains intact. Once again, read yesterday’s post regarding a possible pullback on crypto’s depending on if Bitcoin breaks below the support it is currently testing.
Those who are aggressive, or super bullish, can pick up some Dogecoin here since it is near support. They can add more on the retest. Those who want to play it safely, should wait for a break and close above recent highs above $0.35. You then have a breakout, and the price is more likely to continue higher backed by buyer momentum. Traders love breakouts.
The latter is a valid strategy because the risk vs reward is still great. Next resistance zone comes in around $0.44-$0.45.
So in summary, crypto’s are still going but it will depend on Bitcoin price action. Mark Cuban joins Elon Musk in admiring Dogecoin, but that isn’t a sole reason to jump in. It could all very well be a pump and dump. I tend to focus on the technicals and trade good charts when I see them. Dogecoin has a great chart. And the momentum can carry this higher, if not to the moon.
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