Independent market analyst will further short Dogecoin if Elon Musk continues his plans to add DOGE payments to Twitter. Dogecoin has risen almost 100% to date in hopes that Elon Musk will integrate the token into his Twitter platform. However, a market analyst says the altcoin project has little potential to continue its bull trend in the coming weeks.
Is it time to short Dogecoin?
Independent market analyst GCR says he’s moderately short on DOGE. The reason for this is the recent reaction of the DOGE price to a Musk tweet. cryptocoin.comAs you follow, DOGE in particular formed a local top of $0.158 on Nov. That same day, Musk shared a photo of his pet Shiba Inu wearing a T-shirt with the Twitter logo.
The GCR notes that the Musk influence has vanished when it comes to Dogecoin’s potential integration into Twitter. He argues that this means most of the gains are already priced in. Therefore, according to the analyst, if real integration happens, it will most likely become a sell-off event.
Overbought correction begins for altcoin
Crypto analyst Yashu Gola points out the following technical levels and data for the altcoin. Meanwhile, Dogecoin continued its correction on November 4, three days after $0.158. DOGE’s price dropped to as low as $0.115 on November 4, partly due to rumors that Twitter has paused its crypto wallet development project. This brought the token’s net percentage correction to around 27% from its November 1 local peak. Also, downside movement emerged due to overbought conditions with the highest relative strength index (RSI) since April 2021.
The correction caused Dogecoin price to retest the December 2021-May 2022 support ($0.108-0.124 range; identified by the red bar on the chart above) for a possible pullback. It is possible for the altcoin to reach $0.185, a level that coincides with the 0.236 Fib line if recovery occurs. Conversely, a break below the $0.108-0.124 range is possible as DOGE’s primary downside target is a 55% drop from current price levels to $0.055.
What does DOGE on-chain data show?
Also, Dogecoin’s on-chain data reveals a consistent drop in key metrics going into November that will put further selling pressure. For example, DOGE’s price rally coincided with a sharp increase in whale trades. This shows that they support the upward movement. However, after November 1, fewer whales interacted with the altcoin network.
Meanwhile, the Dogecoin supply breakdown at addresses holding 1,000 to 10 million DOGE fell alongside the price. Conversely, the supply controlled by addresses holding more than 10 million DOGEs has grown modestly.
In addition, addresses below 100 DOGE recorded an increase. This implies that individual investors are offsetting the selling pressure of the whales to some extent.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.