Analyst and trader Peter Brandt believes that the bearish trend of the Dogecoin cryptocurrency has ended, but you should not rely on its strong growth either.
Peter Brandt tweeted the Dogecoin chart, writing about the “downward channel that was disrupted by the recent DOGE price rise. This put an end to the crypto bearish trend that started in May 2021. However, Brandt warned traders that the exit of DOGE from the “red zone” should not be regarded as an automatic signal of the beginning of a bullish trend. According to the analyst, this is a common mistake among novice traders, and more often than not, their assumption is wrong.
This is called a bear channel, the upside violation of which has ended the bear market that began at the May 2021 high $DOGE pic.twitter.com/pZT5yxMje6
— Peter Brandt (@PeterLBrandt) October 30, 2022
Some users commented on Brandt’s tweet, suggesting that this could be a false breakout of DOGE, and the subsequent period of consolidation will determine the further direction of the coin’s movement. Many believe that DOGE’s recent surge to $0.15 is due to the “Elon Musk effect”, more specifically, his completed deal to acquire Twitter. Even when the billionaire posted the usual dog-currency memes, it often pushed the DOGE price up. Therefore, Musk is often called Dogefather (Daddy of DOGE) for supporting the coin in the cryptocurrency community. DOGE is currently trading at $0.11 and has a market capitalization of $16.3 billion.
Earlier, the Tesla CEO said that he will continue to support DOGE despite the market drop, as he sees great potential in this coin. Musk said in May that SpaceX and Starlink plan to accept DOGE as payment for goods and services in the near future. And in September, Tesla introduced a limited collection of “cyber whistles” that were sold only for DOGE.
Source: Bits
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