Dogecoin Faces Resistance: Analyst Predicts Potential Pullback
A notable analyst in the cryptocurrency realm has raised concerns about the future trajectory of Dogecoin (DOGE) following its inability to surpass a crucial resistance level.
An analyst known as Rekt Capital pointed out that Dogecoin recently honored its long-standing diagonal resistance.
The analyst highlighted DOGE’s price behavior last week, indicating a potential decline toward its support around $0.053. Emphasizing a complex weekly closure for Dogecoin, the analysis noted that the weekly closure happened under the upper boundary of the established channel, delaying the anticipated DOGE breakout.
Such previous weekly closures under similar conditions have historically led to downward trends. However, there remains a chance for a positive turn if DOGE manages to sustain its current levels and reclaim the upper channel as a supportive range.
Based on the analyst’s chart, it is suggested that DOGE needs to convert its resistance at $0.07 into a sustainable support level on the weekly chart to confirm the breakout within the channel. At the time of this analysis, DOGE is trading at $0.0697.
Additionally, the analyst is observing the price movements of Ethereum (ETH) and anticipates a potential upsurge, particularly after ETH successfully converted the $1,600 resistance into a supportive level.
Mentioning a range formation between orange support and green resistance, the analysis draws parallels with Bitcoin’s prior breakout and hints that Ethereum might follow suit.
Forming a range between orange support and green resistance
Since #BTC broke out from its own Re-Accumulation Range…
Perhaps #ETH should be next#Crypto #Ethereum pic.twitter.com/f4io4UPZSj
— Rekt Capital (@rektcapital) October 28, 2023
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The analyst’s attention also extends to Fetch.ai (FET), a decentralized machine learning network, suggesting a positive trend continuation if it maintains levels above its monthly support at $0.3633.
Noting a considerable 77% rally and emphasizing the importance of a critical support level, the analysis underlines the significance of this level (depicted in black) for a potential rally to higher values (highlighted in the yellow circle).
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
