1 year ago
Dogecoin (DOGE) has surged astir 100% quarter-to-date (QTD) connected hopes that Elon Musk would integrate the token onto the Twitter platform. However, DOGE's imaginable to proceed its uptrend successful the coming weeks is low, 1 fashionable marketplace expert argues.
Short Dogecoin hard?
Independent marketplace expert GCR said helium is moderately abbreviated connected DOGE based connected its price's caller absorption to a Musk tweet. Notably, DOGE formed a section apical astatine $0.158 connected Nov. 1. The aforesaid day, Musk shared a representation of his favored Shiba Inu wearing a t-shirt with the Twitter logo.
— Elon Musk (@elonmusk) November 1, 2022GCR argues that the Musk-effect is wearing disconnected erstwhile it comes to Dogecoin's imaginable integration into Twitter, meaning that astir of the gains are already priced in. Therefore, if the existent integration happens, it volition apt go a sell-the-news event.
dog banal lone has 2 bullets
bullet 1 - musk tweeting/teasing astir integration; already fired
bullet 2 - authoritative integration into twitter; hasn't shot, but would beryllium merchantability the quality
i'm mean abbreviated connected doggo, but leaving country unfastened to abbreviated harder if they occurrence 2nd bullet
Overbought correction begins
Meanwhile, Dogecoin continued its correction determination connected Nov. 4, 3 days aft topping retired astatine $0.158.
DOGE's terms dropped to arsenic debased arsenic $0.115 connected Nov. 4, successful portion owed to rumors of Twitter pausing its crypto wallet improvement project. That brought the token's nett percent correction from the Nov. 1 section apical to astir 27%.
In addition, the downside determination surfaced owed to its extremely overbought conditions with the highest comparative spot scale (RSI) since April 2021.
DOGE/USD three-day terms chart. Source; TradingViewThe correction has prompted Dogecoin terms to retest its December 2021-May 2022 enactment (defined by the $0.108-$0.124 range; the reddish barroom successful the illustration above) for a imaginable pullback. The coin whitethorn scope $0.185, a level coinciding with its 0.236 Fib line, if the betterment occurs.
Conversely, a interruption beneath the $0.108-$0.124 scope could person DOGE driblet to $0.055 arsenic their superior downside target, down 55% from existent terms levels.
DOGE on-chain data
Furthermore, Dogecoin's on-chain information reveals a accordant driblet successful cardinal metrics entering November, which could adhd much sell-pressure.
Related: Shiba Inu terms drops to grounds debased vs Dogecoin — Will past repetition with a 150% rally?
For instance, DOGE's Twitter-led terms rally coincided with a crisp emergence successful whale transaction number (worth implicit $100,000), suggesting that they supported the upside move. But aft Nov. 1, less whales person interacted with the Dogecoin network.
Dogecoin whale transaction count. Source: SantimentMeanwhile, the Dogecoin proviso organisation crossed addresses holding betwixt 1,000 and 10 cardinal DOGE tokens has fallen alongside the price. Conversely, the proviso controlled by addresses holding much than 10 cardinal DOGE tokens has accrued modestly.
Dogecoin proviso distribution. Source: SantimentIn addition, the addresses holding beneath 100 DOGE person been increasing, hinting that retail investors person been offsetting whales' selling unit to a definite degree.
The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.
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