Crypto Analyst Nicholas Merten examined the relationship between Dogecoin (DOGE), also known as the meme coin, and the leading cryptocurrency Bitcoin (BTC) and issued a warning that Dogecoin may not have completed its correction against Bitcoin yet.
One of Merten’s points is that the monthly Dogecoin/Bitcoin chart continues to perform poorly. This shows that Dogecoin continues to lose value against Bitcoin. Merten points out that this weakness could be a factor supporting Dogecoin to remain bearish against Bitcoin.
“I believe things will get better in the future. I don’t think they’ll do that yet. I have to say, if this is new support and all we see is a 22% rise in the monthly candle and then fading out for three months without any continuation of those gains, this is not a bull market.
We can see what Dogecoin looks like in a bull market: 600% rise in one month, 542%, even towards more moderate months, 80%, 30%, 209% (…) This is what I am looking for. Perhaps Dogecoin will not produce such optimistic results. But, I need to see 10%, 20%, 30% for a few months before I start to get really excited.”
According to Merten, the popular meme coin will only become worth tracking if DOGE/BTC starts repeating similar moves by June and October of 2021.
“It doesn’t matter what the narrative is. What matters is price movement. Because regardless of the narrative, if the price no longer shows interest in this range and is moving lower and no buyers are coming, it will probably continue to move lower.”
Merten expects a correction of about 90%; This means that the DOGE/BTC trading pair will reach the bottom at 0.00000130. DOGE/BTC is trading at 0.00000218 BTC ($0.0582) at the time of writing.
You can follow the current price movement here.