In line with a distinguished strategist analyzing the Dogecoin (DOGE) worth, it seems that the meme cryptocurrency could also be in line for a significant crash. Although DOGE has plummeted over 60% from its Might 8 all-time excessive, the crypto analyst sees a drawdown of a fair bigger magnitude — and never even Elon Musk’s tweets can cease this from occurring.
Not Even Elon Musk Can Rescue Dogecoin From Incoming Crash
In the previous few weeks, Dogecoin bulls have been working onerous to place collectively a monumental rally. Sadly, each try to bounce again has been met by a promoting wall.
A take a look at Dogecoin’s chart reveals a head-and-shoulders formation. This can be a classical bearish setup that alerts the probability of a transfer decrease. To place it merely, this formation is painted when a coin types three peaks on the identical assist stage, with the center peak being greater than the opposite two.
Based mostly on the chart hooked up, analyst Tyler Durden sees Dogecoin struggling an over 66% correction within the subsequent couple of months. Durden describes the head-and-shoulders setup as “programmed”, emphasizing its tendency to trigger a considerable drop within the worth of DOGE as soon as the $0.299 assist stage is breached.
For the astute strategist, this sample’s subsequent leg down brings the DOGE worth to $0.05. He notes that Elon Musk’s supportive tweets will be unable to reverse the bearish development.
Dogecoin, the Shiba Inu-themed cryptocurrency created as a satirical homage to bitcoin, noticed a parabolic rally within the first few months of 2021, surging as a lot as 15,300% at one level — thanks largely to an endorsement from Tesla/CEO Elon Musk. The self-appointed Dogefather has even declared Dogecoin the “folks’s crypto”.
The Dogecoin craze misplaced steam after Musk described the cryptocurrency as a “hustle” throughout his Saturday Night time Stay internet hosting. The centibillionare’s feedback triggered a 30% drawdown within the worth of DOGE within the span of hours. The cryptocurrency continued on a downward development. As of June 18, Dogecoin is buying and selling 62% decrease than its $0.76 ATH.
Is Dogecoin Doubtless To Tank To Zero In 2021?
Earlier this month, a pseudonymous analyst going by the title The Asian Investor unleashed a brutal evaluation of Dogecoin, which he known as a “pump-and-dump” alternative. In his viciously worded article on Looking for Alpha, the analyst mentioned the cryptocurrency will endure a sluggish loss of life as its careens to zero.
The Asian Investor defined:
“With new pump-and-dump “alternatives” popping up each different day, it’s not very interesting to take a position into an “asset” that has already risen this a lot.
Anticipate Dogecoin to fall in direction of $0 this yr and die a sluggish loss of life.”