Dogecoin (CRYPTO: DOGE) has taken a sharp U-turn this week amid the broader cryptocurrency market’s decline, but that hasn’t deterred optimists.
What happened: The dog-themed meme coin has descended as much as 19% this week from the 7-day peak of $0.48. The downturn has been precipitated by Bitcoin’s (CRYPTO: BTC) flash crash on Monday.
Widely followed cryptocurrency analyst Trader Tardigrade observed that DOGE was oscillating between the oversold and overbought zones on the macro chart and that the cycle top was still a long way away.
“DOGE has just left the oversold zone and is now heading to the overbought zone, which is projected linearly at around $8 to $10,” the analyst stated. “I consider this is the top of this cycle.”
Trader Tardigrade projected that after the top, DOGE could fall to the support zone of $0.8 to $1.8, which could be an entry point for the next cycle.
Another technical analyst with a sizable X following Charting Guy projected that the DOGE’s choppy movement would end in the next 10 days and the next breakout would propel it to all-time highs.
“IMO, we are in the final moments to accumulate alts at decent prices; don’t let the blood scare you, get greedy,” the trader said.
Why It Matters: This bullish remark contradicted signals from some well-known technical indicators of the cryptocurrency.
The Moving Average Convergence Divergence indicator flashed a “Sell” signal as of this writing, per data from TradingView.
The MACD compares two exponential moving averages of an asset’s price to show the trend’s momentum.
Similarly, the Momentum indicator, which compares the current price with the previous price from several periods ago, indicated a bearish sentiment.
In the last 24 hours, the balance of long-term DOGE holders declined by 0.88%, according to IntoTheBlock, suggesting that they were selling aggressively.
Price Action: At the time of writing, Dogecoin was exchanging hands at $0.3901, down 3.38% in the last 24 hours, according to data from Benzinga Pro.
Image via Shutterstock
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