A closely watched crypto analyst believes that top memecoin Dogecoin (DOGE) is now poised for a significant downward move after last month’s strong performance.
Pseudonymous analyst Rekt Capital tells his 348,900 Twitter followers that DOGE is looking bearish for now after failing to clear resistance from a falling wedge pattern.
The analyst says that in a worst-case scenario, DOGE could retreat all the way to the diagonal support of the pattern around $0.055.
“DOGE executed its new weekly close below the pattern resistance.
As a result, DOGE may be set up for a rejection and consolidation within patterns.
At worst, DOGE could return to the bottom of the market structure.”
At the time of writing, DOGE is trading at $0.078, suggesting a more than 29% downside move if the memecoin meets the analyst’s downside target.
Looking at Bitcoin (BTC), Rekt Capital says it continues to take a bullish lean on major crypto assets after bulls successfully defended support at $29,250.
“BTC retest is still ongoing.”
At the time of writing, Bitcoin is worth $29,801.
The next step is the leading smart contract protocol Ethereum (ETH). Rekt Capital says ETH needs to hold above its USD 1,863 immediate support to stand a chance of a rally above USD 2,000.
“ETH should stay here to give the price a chance to revisit ~$2,275 in the coming weeks.”
At the time of writing, ETH is worth $1,869.
The trader is also keeping an eye on Ethereum rival TomoChain (TOMO). Rekt Capital warns that the low-cap altcoin now appears poised for a post-July close correction below its high timeframe resistance at $1.60.
“Gathered +54% since black support, rallied into red resistance and moved past it. Monthly Close Now key.
Monthly close above red -> bullish. Monthly Close under red -> relapse within black-red range possible again.”
At the time of writing, TOMO is worth $1.42.
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Image generated: Midway through the journey