Dogecoin Poised For A Deep Pullback After Failing To Hold Key Resistance, Analyst
November 01 2023 - 12:00PM
NEWSBTC
Following a futile fight to break the $0.07 resistance, Dogecoin
(DOGE) appears poised for a big drop. This was a warning in an
October 31 X post by prominent crypto analyst Rekt Capital to his
nearly 400,000 followers. According to the analyst, despite its
notable rally last week, DOGE failed to break its diagonal
resistance, which resisted its ascent for several months. As a
result of this failure, DogeCoin’s price might decline
significantly soon. Rekt Capital Analysis: DogeCoin’s Complex
Weekly Close Below Resistance From Rekt Capital’s analytic chart,
Dogecoin (DOGE) has had a tricky week. It recorded notable upswings
but closed below a significant resistance level at the price
channel top. The analyst marked the meme coin’s closing price with
a circle, as seen on the chart below. Related Reading: Galaxy
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This setup suggests that DOGE’s anticipated big upswing might
encounter delays, the analyst said in the Twitter post. He added
that, in the past, when this has happened, DogeCoin’s price
declined significantly. This means that the DOGE breakout is
postponed. Previous weekly closes like this -> downside, Rekt
Capital remarked. However, despite the high likelihood of a
decline, the analyst believes there’s hope for DOGE. Rekt said, “If
DOGE can hold the highs and reclaim the channel top as support –
there may still be a chance.” Based on Rekt’s chart, to confirm a
bullish trend, the DOGE $0.07 resistance needs to change to a
support level on the weekly timeframe. Ali Martinez’s Bullish
Analysis: Dogecoin’s Promising Breakout Recently, another crypto
expert, Ali Martinez, made an optimistic prediction about Dogecoin.
The analyst shared a chart on the X platform showing that the meme
coin has broken out of a long-term pattern. According to Martinez,
this happened when the overall cryptocurrency market trend shifted
upwards. Also, Martinez highlighted that a special TD Sequential
indicator gives a BUY signal on DOGE. According to the analyst,
this signal strengthens the positive outlook for the
cryptocurrency. In context, this indicator helps traders figure out
if an asset’s price might change direction. Meanwhile, Dogecoin has
formed two consecutive bullish higher-high candles on the weekly
chart. The setup confirms that DOGE indeed broke free from the
previous pattern. Related Reading: XRP Whale Transactions
Spike To 3-Month High As Smart Money Buys In line with Rekt’s
analysis, if the market keeps up this pace, the price could
increase significantly. As of the time of writing, DOGE is trading
at $0.0665; the coin is down by almost 4% in the past 24 hours.
However, over the last seven days, Dogecoin has gained more than
1%, with a 12% 14-day increase. Featured image from Shutterstock
and chart from TradingView.com
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