All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Top market analyst is bearish on the price of Dogecoin (DOGE).
- While there is a chance of a correction, he believes it will be long-term.
Database founder and crypto analyst Nicholas Merten has issued a warning over the popular dog-themed memecoin Dogecoin (DOGE). In a new video that he posted on YouTube, the analyst pointed out that DOGE is likely to continue correcting against the leading digital asset Bitcoin (BTC), and as such, the memecoin may continue on a bearish movement against the price of BTC.
In the month-to-date period, the DOGE/BTC chart is showing signs of weakness, validating the bearish call from the analyst.
While DOGE is currently down by 0.98% in the past 24 hours and is now trading at $0.05828, Merten acknowledged the possibility of the current market conditions getting better. While he sees the potential, he does not see the likelihood of it happening anytime soon but rather, in the future.
Notably, he pointed out that a 22% upward movement on a monthly candle followed by three months of just fading those gains with no follow-through, does not count as the bull run he is envisaging.
A bull market for Dogecoin would mean a price surge of “600% moves in a month, 542%, even towards more moderate months, 80%, 30%, 209%, multiple months. 73%, 79%, 114% in a single month,” the analyst said.
Unless these are the level of increase that Dogecoin is experiencing, Merten sees no reason to be excited. In the case where the memecoin will not produce optimistic results, he still expects a price surge of 10%, 20%, and 30%.
For the analyst, getting excited about Dogecoin would only happen when DOGE/BTC starts to repeat similar moves to last year’s June and October when the foundation for the most notable bullish surges in the past year was laid.
Dogecoin Uptick Envisaged
In addition to this thesis, Mertens noted that he does not “care about this current trend” in hopes of what is coming. He said.
From buyers in June [2022], a 23% move, barely closing any of those gains out, holding them up there and then having a 94% move. I understand there’s some nuance with maybe Elon [Musk] was saying Twitter was going to use DOGE or whatever,
No matter the activities going on around DOGE including Musk’s plan to introduce the memecoin on the X app, Merten is more interested in the effect it has on the price of the coin. This is because the inability of these narratives to positively affect DOGE price would trigger a downward trend for the memecoin’s ecosystem especially as buyers would be uninterested in moving forward.
It is strongly believed that the current situation of DOGE price is contributed by weakening expectations in the memecoin’s ecosystem. Over time investors seem to have realized that they were overexposed in their investment in Dogecoin and some of their grievances have now been expressed in an ongoing Class Action lawsuit against Elon Musk.
Moving forward, investors are expecting a Dogecoin rebound amidst high liquidations in long trader positions. More often, Dogecoin is largely bolstered by its high adoption by deep-pocketed investors seeking diversification from Bitcoin and Ethereum (ETH).
