What is Dogecoin (CCC:DOGE-USD)? It’s utility has been both a joke, as well as a speculative trading vehicle among meme traders. But today the prank is on those bulls not really listening to Elon, as well as what’s being spoken on the DOGE coin price chart.
DOGE. It’s been around the block. In fact, the token was introduced in 2013 with the purpose to provoke laughter, according to its creators. It still does. But Dogecoin has competition on its tail.
With digital assets of all sizes and essential and non-essential value estimated at upward of 9,000 coins and tokens, the law of large numbers supports more laughable coins are out there. They tease with the promise of making an exceptionally risky investment into a wealth-changing endeavor. Don’t be fooled.
New Tricks for Dogecoin?
Recent crypto entrant Tiger King coin and ecosystem Tiger Cub tokens courtesy of Netflix (NASDAQ:NFLX) Tiger King star Joe Exotic points at certain proof of other jokes circulating in the decentralized finance universe.
But DOGE isn’t resting on its laurels and relinquishing its title. Recently, the crypto gave birth to its own Baby Doge token. Well, kinda sorta. The self-proclaimed “son of Doge” was created by DOGE’s rabid community of fans.
Baby Doge’s value is as a charity-based, dog rescue hyper-deflationary coin. It’s a worthy mission and one meant to impress its DOGE parent with improved transaction speeds and adorableness. Mind you, those are their words, not mine.
Impressively, Baby Doge’s community now also includes NASCAR driver Brandon Brown who’s sponsoring the Son of Doge due to its philanthropy. And so far in just a month’s time, that service has amounted to the crypto donating nearly $100,000 to save our four-legged friends. Good boy Baby Doge!
Still and when it comes to DOGE, it’s hard to teach an old dog new tricks. And today and any which way you look, that’s not good news for Dogecoin lovers.
Dogecoin Weekly Price Chart
Source: Charts by TradingView
The truth is out there. And none other than Tesla’s (NASDAQ:TSLA) Elon Musk and DOGE’s most vocal promoter, has ensured a speculative joke has seen its best days.
In mid-May on Saturday Night Live’s popular news segment, the truth of the crypto being a simple hustle and vehicle to trade was teased out of Elon’s mouth. And it wasn’t a shot over the bow for Dogecoin, it was ammunition responsible for sinking DOGE.
Technically, a hemorrhaging selloff in the show’s aftermath was followed by three weeks of inside candlestick activity. For DOGE bulls and shares quickly challenging the coin’s 62% retracement, it set the stage for a corrective uptrend to emerge. It failed to deliver.
Instead, a Chevy Chase-style pratfall took place with Dogecoin tumbling to relative lows.
At today’s price of around $21.25 cents, hope might spring eternal that maybe, just maybe this trading vehicle might learn a new trick?
To be fair, Dogecoin isn’t trading between a rock or rather zero and $.0016 and where the coin was at Covid-19’s bottom in March 2020. In fact, Dogecoin’s price is a great deal higher. But that’s also a potential hazard, right?
Personally, I’d warn against any wide-eyed bullish ambitions in DOGE. Still and if that type of speculation is in your wheelhouse, what might a purchase look like?
Other than recommending the tiniest of dollar allocations to a very risky crypto, I’d also suggest waiting for June’s hammer to be confirmed, alongside a bullish stochastics crossover. At that point at least, traders have a fighting chance for the coin to bottom versus simply fighting today’s bearish trend.
Is that too much to ask? I don’t see it that way. Moreover, unless your work as a trader is as a charitable enterprise, I’d suggest donating to a more worthy cause like Baby Doge as DOGE Sr. ultimately looks like toast.
On the date of publication, Chris Tyler holds (either directly or indirectly) positions Grayscale Bitcoin and Ethereum Trusts (GBTC, ETCG and ETHE). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.