BabyDoge Price Strategy- MACD signals buy as price closes in on important support

Saif Naqvi
Source: babydoge.com

In terms of price action, BabyDoge has had an uneventful March thus far. It declined as low as 20% from its 2 March peak amidst a relentless downtrend. To aggravate the situation, weekly social media mentions have dried up and Ethereum whales have preferred Shiba Inu as their top meme pick. Fortunately, a further 5%-7% decline would bring BABYDOGE to a potential buy zone from where the next rally can be expected. At the time of writing, BABYDOGE traded at $0.000000002773, down by 2.7% over the last 24 hours.

BabyDoge 4-hour Chart

Source: TradingView

BabyDoge should not be signaled out for its lackluster performance on the chart. Its downtrend began more prominent during February – the same month which hosted two Bitcoin flash crashes. The period between 24 February-2 March was promising but bulls failed to overturn a chain of lower highs and the downtrend stretched to a $0.00000000270 on 14 March, marking a 4-wk low. During the same period, BabyDoge’s 4-hour MACD slipped beneath its half-line and offered assistance to the bearish side.

The price was now 5%-7% off from a significant region between $0.00000000260-$0.00000000258. The zone was responsible for two major rallies – a 62% increase between 3-6 January and a 30% surge between 24 February-02 March. In technical analysis, areas that trigger large price movements have higher chances of holding up in a downtrend.

To support chances of a rebound, the MACD offered up a bullish divergence for assistance. The indicator noted higher lows over the past few sessions as opposed to the price’s lower lows. Such divergences occur when selling pressure starts to ease, paving way for bulls to grab market control.

Price Strategy

Source: TradingView

A simple buy Order can be placed once BabyDoge tags its strong support zone. To be more precise, investors can take long calls at $0.00000000260. Take profit can be set at $0.0000000337-resistance while stop-loss can be maintained at $0.00000000300. The trade setup carries a 4 risk/reward ratio.