By CCN: Originally created as a programmer’s practical joke, Dogecoin has defied the odds to cement its place near the top of the crypto market cap. Joke or not, however, this cryptocurrency is about to mount a serious challenge to Bitcoin, and prescient investors could yield a 185 percent windfall.
Dogecoin Flashes Wildly Bullish Signal
Through the years, one crypto trading formula that has stood the test of time is buying support while the market is oversold. The more oversold, the better.
That’s because oversold conditions provide selling relief. In other words, supply tends to dry up because the price is so low that no one’s interested in selling. Meanwhile, buyers return because the market is cheap.
You don’t have to be a rocket scientist to put two and two together. Rising demand plus low supply very often equates to a price surge
We’re seeing this dynamic happen in Dogecoin, which is currently priced at $0.00294 or 38 satoshis (0.00000038 BTC).
Dogecoin trades at strong support while close to oversold territory. | Source: TradingView
A quick look at the daily chart illustrates how Dogecoin bounced at the durable support of 35 satoshis (0.00000035 BTC) on May 13. This bounce was spurred by extreme oversold conditions. Unfortunately, the bounce was short-lived, as bottom-pickers quickly took profits.