Dogecoin Headed To 5 Cents After Losing Crucial Support Level
Not Even Elon Musk Can’t Save It, Says Bitcoin Bull
Pseudonymous cryptocurrency analyst Tyler Durden said on social media that even Tesla Inc (NASDAQ:TSLA) CEO Elon Musk cannot save Dogecoin (CRYPTO: DOGE) from hitting a “programmed” 0.05 level.
What Happened: Durden, a known Bitcoin bull, posted a chart on Twitter and claimed that Musk’s tweets could not rescue the meme cryptocurrency.
Even Elon can’t save this with his tweets. He’s tried and each time he just created another lower high.
0.05 is programmed.
The chart in the tweet appears to be what is known as a “Head and Shoulder” pattern.
This pattern has a baseline with three peaks with the outside peaks being close in height and the middle being the highest. This sort of formation indicates a bullish-to-bearish trend reversal in technical analysis.
Why It Matters: The head and shoulders pattern denotes one of the most reliable trend reversal patterns, as per Investopedia.
The tweeted chart indicates a $0.299 support level. DOGE traded below the stated level, down 10% over 24 hours at $0.255 at press time. The cryptocurrency has plummeted 17.2% over a seven-day period.
The Shiba Inu-themed coin traded 63.38% lower from an all-time high of $0.74 hit last month.
Since the beginning of this year, DOGE has soared 5691.79% buoyed by tweets from Musk and mentions by other celebrities.
Dogecoin Bear Barry Silbert Says 99% Of Cryptocurrencies Are Overpriced
Founder and CEO of Digital Currency Group Barry Silbert said on social media Monday that almost all cryptocurrencies are overpriced.
What Happened: Silbert’s comments came in response to a tweet from Bloomberg’s Joe Weisenthal that inquired if cryptocurrencies were overpriced generally or “just a bunch of sh*tcoins that have no business being where they are?”
Silbert said, “99% are overpriced.”
Silbert last month disclosed taking a short position in Dogecoin (DOGE), and earlier this month said he expects the hot meme cryptocurrency to fall below $1 billion market capitalization.
Why It Matters: Silbert’s Digital Currency Group subsidiary Grayscale Investments is in the cryptocurrency asset management business.
The firm runs funds such as the Grayscale Bitcoin Trust (OTC:GBTC) and the Grayscale Ethereum Trust (OTC:ETHE).
Bitcoin (BTC), the apex cryptocurrency, has surged over 23% in a seven-day trailing period as of press time. BTC traded 4.26% higher at $40,484.98.
GBTC closed 7.47% higher at $33.08 on Monday, while ETHE ended the day 5.95% higher at $24.45.
By Shivdeep Dhaliwal