The popular TradingView analyst Sergey Zhukov (Sergey_Zhukov) explained why it is not worth betting against the altcoin, and how high its rate may rise in the near future
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In May, crypto exchange Coinbase announced the listing of an altcoin. The very fact that large platforms and media personalities such as the head of Tesla and SpaceX Elon Musk pay attention to DOGE only increases the coin's liquidity and trading volumes.
Not so long ago, Barry Silbert, founder of the Digital Currency Group, announced a short position (played down) on the meme cryptocurrency, thereby challenging the main proponent of the project, Musk. History knows such examples – everyone remembers the public shorts on Tesla shares, which ended in failure.
What do we have now
The maximum price increase and trading volumes will occur on the eve of the Dogecoin listing on Coinbase, which is scheduled in 6-8 weeks. It is highly likely that by that time the value of the altcoin will reach the most important psychological level of $ 1.
On January 29, the coin set a high for daily trading volumes. Since then, this record has not been broken. After that, the nature of the price movement changed and acquired a wave-like character, where each subsequent upward impulse opens a new price range, and a natural correction to a level of about 50%.
This situation has been repeated several times already, I call it the Doge Triangle Phenomenon. Even a novice analyst will find a dozen converging triangles on the chart (technical analysis figure). As a rule, this is a pattern that indicates a likely continuation of the trend. And all of them are resolved in the direction of price increases by the predicted range.
Now $ 0.4 (50% for Fibo correction) is a key level, a breakdown of which will open the way to $ 0.3 (38% for Fibo correction + POC over the last 30 days). The price forms an ascending channel and moves inside very skillfully. If the trend continues, then the channel brings us to the $ 1 level in just 6-8 weeks, which is in line with the Coinbase listing predictions.
Purchases from the level of $ 0.40 and above look logical. On May 15, 11:40 GMT, the altcoin price is $ 0.52. I recommend limiting losses with a stop-loss order below the $ 0.30 level. The goal is $ 1 and above. At the same time, the potential risks are two times lower than the potential profit.
In the event of a breakdown of the $ 1 level and consolidation above it, this will provoke a new wave of Dogecoin's popularity. With the most daring forecasts, the price of an altcoin could reach $ 10 within a few years.
Risks and an alternative scenario if it falls to $ 0.30 and below
Risks of a Dogecoin fall and what you need to pay attention to: 1) Dogecoin may fall in price if a similar instrument appears, in which media personalities, including Elon Musk, believe. 2) The main crypto exchanges on which Dogecoin is traded are always subject to strong pressure from authorities and states. The closure of one of the exchanges where the altcoin is traded, and any rumors around it, will push its price down. 3) The Dogecoin price will decline if the listing on Coinbase is canceled or the dates are postponed. 4) The risk of a high concentration of coins on a small number of wallets. If the main holders of the asset start selling, this could provoke a general panic. Be prudent and manage your risks, otherwise they will control you!