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.
“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.
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sergey Nivens
