Even Elon Musk can't save Dogecoin from crashing another 60%, analyst asserts
June 18, 2021. Summarized by summa-bot.
Compression ratio: 32.4%. 1 min read.
The joke cryptocurrency has crashed by over 60% from its May 8 peak and an analyst believes it has another 60% more to go.
Durden flashed the Head and Shoulder-like pattern to predict a 67% price crash in the Dogecoin market.
Calling it "programmed," the analyst hinted at the pattern's tendency to crash the assets once it breaks below $0. 299, the support level.
In Dogecoin's case, the maximum length between the Head and Shoulder pattern's top and support level came out to be $0. 197.
What worked as a bullish catalyst for Dogecoin was nothing but tweets from Elon Musk, a billionaire entrepreneur who sent out various supportive messages favoring the cryptocurrency during its multi-thousand percent price rally.
Before that, Musk's decision to work with Dogecoin developers to improve its transaction efficiency resulted in a 25. 25% intraday price pump on May 13.
But the frenzy-like, Musk-led pump also left Dogecoin with little possibility of establishing sustainable price floors.
Therefore, before hitting Durden's $0. 01 price target, Dogecoin anticipates to find buyers in the $0. 040-0. 047 area, owing to its brief but historical significant as a support range.
In his Seeking Alpha piece published earlier this month, the pseudonymous analyst called Dogecoin a pump-and-dump token, adding that the cryptocurrency would eventually crash to zero.