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 that 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 last reflection of the DOGE price on a Musk tweet. Koindeks.com As you follow, DOGE in particular made a local top with $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 disappeared when it comes to the potential integration of Dogecoin into Twitter. He argues that this means that many of the profits are already priced in. Therefore, according to the analyst, if real integration takes place, it will most likely become a sell-off event.
Multi-bought correction begins for altcoin
Crypto analyst Yashu Gola points out the following technical levels and information for the altcoin. In this midst, Dogecoin resumed its correction on November 4, three days later at $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 from the local high of November 1 to about 27%. Also, bearish movement has emerged due to multi-bought conditions with the highest relative strength index (RSI) since April 2021.
The correction caused Dogecoin price to retest the December 2021-May 2022 reinforcement ($0.108-0.124 range; identified by the red bar on the top chart) 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. On the contrary, a break below the $0.108-0.124 range is likely to result in a 55% drop from current price levels to $0.055 as DOGE’s primary downside objective.
What does DOGE on-chain data show?
Also, Dogecoin’s on-chain information reveals a balanced drop in precious metrics going into November, which will create more selling pressure. For example, DOGE’s price rally coincided with a sharp increase in the number of whale processes. This shows that they support the upper-sided movement. However, after November 1, fewer whales interacted with the altcoin network.
In the middle, the Dogecoin supply breakdown at addresses holding 1,000 to 10 million DOGE has dropped alongside the price. Rather, the supply, controlled by addresses holding more than 10 million DOGE, increased modestly.
In addition, addresses below 100 DOGE saw an increase. This implies that personal investors are offsetting the selling pressure of the whales to some extent.