A widely-followed trader is issuing a warning that Dogecoin (DOGE) could face a significant pullback before it can kick off the next leg of its bull market.
In a new tweet, crypto analyst Loma tells his 157,600 followers that he believes Tesla CEO Elon Musk’s appearance on the popular sketch comedy show Saturday Night Live (SNL) is a sell-the-news event.
[adinserter block="1"]“DOGE SNL Gameplan:
– Price pushes up leading into SNL
– Underwhelming SNL
– Pulls back to about ~$0.45-$0.50 area
– Consolidates for a bit.”
According to the trader’s chart, DOGE’s current price action mirrors its market structure in mid-April when the Shiba Inu-inspired asset skyrocketed to $0.45 before pulling back to a low of around $0.16. While Loma is short-term bearish on the fourth-largest crypto asset, he asserts that the correction is an opportunity to buy on dips.
“As much as we like to use ‘sell-side liquidity crisis’ as a meme… I’ve been scalping DOGE for quite a bit of time and that’s definitely what it feels like… I think the SNL dump will be for buying, would be shocked if we trade under $0.40 before a new bear cycle starts.”
Loma highlights that after the correction, he sees DOGE resuming its uptrend en route to his target of $1.00. Should the crypto asset follow the analyst’s script, the move from $0.45 to $1.00 represents potential gains of over 122%.
At time of writing, DOGE is trading at $0.66, up nearly 70% in seven days, according to CoinGecko.
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Featured Image: Shutterstock/Sergey Nivens
