BabyDoge Price Strategy: How to capitalize on the alt’s slippery slope

Saif Naqvi
Baby Doge Coin
Source: Pixabay

External developments have had little impact on Baby Doge’s chart, with its price falling under the influence of broader market losses. Without the presence of a strong support region, Baby Doge’s price could continue to decline over the week before a rally takes place. At the time of writing, the altcoin traded at $0.0000000294, down by 2.5% over the last 24 hours.

Baby Doge’s much-anticipated partnership gained traction on social media platforms on Tuesday. The meme coin stood out amongst its peers, with its daily social volume and social dominance climbing by 30% and 34.6%, respectively on LunarCrush. Normally, an increase in social scores can trigger a buying hysteria but bullish investors seemed to be absent for the time being.

Furthermore, top Ethereum whales overlooked Baby Doge and favored its rival, Shiba Inu instead. The token did not feature among the top Ethereum whale holdings, purchases, or most used smart contracts during the week.

Baby Doge 4-hour Chart

Source: TradingView

The charts revealed that Baby Doge’s price has continuously declined since touching a 1-week high on 2 March. A close below a major support level at $0.0000000315 made the price vulnerable to a 17% correction, with the next defense available only at $0.0000000260.

The Directional Movement Index’s bearish stance strengthened the chances of an unfavorable outcome. While a bullish crossover was visible on the MACD, it was doubtful whether the same was enough to trigger a price hike. The candles have traded below their 100-period EMA for 16 days now and standalone bullish cues, such as the one available on the MACD, should normally be taken with a pinch of salt.

Price Strategy

Source: TradingView

Investors can make a quick short trade on the Baby Doge market while keeping the above-mentioned points in mind. However, one must wait for MACD’s bullish crossover to play out first. Short trades can be set up at $0.0000000276 and take-profit at $0.0000000260. Stop-loss should be maintained at $0.0000000285. The trade setup carried a 1.78 risk/reward ratio.