A closely followed crypto analyst believes that top memecoin Dogecoin (DOGE) is now primed for a significant move to the downside following its strong performance last month.
Pseudonymous analyst Rekt Capital tells his 348,900 Twitter followers that DOGE looks bearish for now after failing to take out the resistance of a falling wedge pattern.
The analyst says that in a worst-case scenario, DOGE could pull back all the way down to the diagonal support of the pattern at around $0.055.
“DOGE has performed its new weekly close below the pattern resistance.
As a result, DOGE is potentially set up for a rejection and intra-pattern consolidation.
In a worst-case scenario, DOGE could retrace to the very bottom of the market structure.”
At time of writing, DOGE is trading for $0.078, suggesting a downside move of over 29% if the memecoin hits the analyst’s downside target.
Looking at Bitcoin (BTC), Rekt Capital says he continues to lean bullish on the top crypto asset after bulls successfully defended support at $29,250.
“BTC retest is still in progress.”
At time of writing, Bitcoin is worth $29,801.
Next up is the leading smart contract protocol Ethereum (ETH). Rekt Capital says that ETH must stay above its immediate support at $1,863 to have a shot at rallying above $2,000.
“ETH needs to hold here for the price to have a chance at revisiting ~$2,275 in the coming several weeks.”
At time of writing, ETH is worth $1,869.
The trader is also keeping an eye on Ethereum rival TomoChain (TOMO). Rekt Capital warns that the low-cap altcoin now looks poised for a correction after closing the month of July below its high timeframe resistance at $1.60.
“Rallied +54% since black support, rallying into red resistance and overextending past it. Monthly Close now key.
Monthly close above red -> bullish. Monthly Close below red -> downside inside the black-red range again possible.”
At time of writing, TOMO is worth $1.42.
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The post Dogecoin (DOGE) Could Correct Nearly 30% in Worst-Case Scenario, Says Crypto Strategist – Here’s His Outlook appeared first on The Daily Hodl.
