Crypto Expert Suggests Potential 30% Correction for Dogecoin (DOGE) in Unfavorable Situation
In the dynamic realm of cryptocurrency, an influential crypto analyst has turned their attention to the ever-popular memecoin, Dogecoin (DOGE). After an impressive performance in the previous month, there’s a growing sentiment that DOGE might be gearing up for a noteworthy downward movement.
The expert behind the pseudonym Rekt Capital, who has garnered a substantial following of 348,900 on Twitter, has shed light on DOGE’s current outlook. Despite its recent strides, DOGE seems to be caught in a bearish trend, struggling to breach the resistance posed by a descending wedge pattern.
Delving into the specifics, the analyst lays out a potential scenario where DOGE could experience a significant pullback, retracing its steps all the way down to the diagonal support of the pattern, which is roughly marked at $0.055. The recent weekly close for DOGE transpired beneath the pattern’s resistance, potentially setting the stage for a rejection and a phase of consolidation within the pattern itself. The direst possibility envisioned by the analyst envisions a retracement right down to the bottom of the overarching market structure.
As of the current moment, DOGE is actively trading at $0.078. This price point implies the potential for a downturn exceeding 29% if DOGE ultimately adheres to the bearish trajectory as projected by the analyst.
Shifting the focus towards Bitcoin (BTC), Rekt Capital maintains an optimistic stance on this premier cryptocurrency. He highlights the successful defense of the $29,250 support level by the bullish players in the BTC market. The ongoing retest indicates an ongoing process, and the analyst remains upbeat about Bitcoin’s prospects.
In terms of valuation, Bitcoin’s current standing is at $29,801.
The narrative then transitions to Ethereum (ETH), a prominent smart contract platform. Here, Rekt Capital stresses the importance of ETH maintaining its position above a critical support threshold at $1,863. By doing so, Ethereum would be positioning itself for a potential surge above the $2,000 mark in the weeks ahead.
At the time of this composition, Ethereum is valued at $1,869.
TomoChain (TOMO), an Ethereum competitor, also commands the attention of this astute trader. Cautions are raised regarding TOMO’s trajectory as it concluded the month of July beneath a high timeframe resistance level at $1.60. The analysis suggests that TOMO’s recent rally, which saw an impressive 54% gain from the black support level to surmount the red resistance, might be reaching a point of overextension. The upcoming monthly close holds significant implications, with a close above the red resistance potentially heralding a bullish phase, while a close below it could usher in a period of downside movement within the black-red range.
In the volatile universe of cryptocurrencies, these insights from Rekt Capital provide valuable guidance for traders and enthusiasts alike, shedding light on the potential trajectories of Dogecoin, Bitcoin, Ethereum, and TomoChain in the coming weeks.