A widely followed crypto analyst says that there is a near certainty that dog-themed Dogecoin (DOGE) will increase sevenfold.
The pseudonymous trader Altcoin Sherpa tells his 195,900 Twitter followers that Dogecoin will likely reclaim the $0.50 level.
However, Sherpa notes that it could take time, which could prevent long-term holders from investing in other opportunities. He also warns that other memecoins like Shiba Inu (SHIB) and Pepe (PEPE) could gain momentum at the expense of DOGE.
“DOGE: A high probability/low IQ play is that you can just buy DOGE now and go into a coma and then wait for it to go to $0.30-$0.50 or even higher. It’s going to happen eventually.
Downsides are:
According to Sherpa’s chart, DOGE is breaking out of resistance levels indicated by exponential moving averages. The chart shows DOGE retesting the key 89-day EMA, which traders use to indicate a trend reversal.
The last time DOGE traded for $0.50 was in 2021.
Dogecoin is worth $0.0709 at time of writing, up 3.9% in the last 24 hours.
The trader is also weighing on Bitcoin (BTC), and he predicts a move to the upside in the near term after holding support at the 200-day EMA.
He identifies four key price levels that he is keeping an eye on as the king crypto ranges: $31,458 and $31,047 in the upper bound range and $29,889 and $29,508 in the lower bound range.
“BTC: There are four lines that matter in this range, the range highs and the range lows and some of the areas close to them. Everything else in the middle is noise. This is still a 4h 200-EMA support area/range low. Expecting this to go up in the short term.”
Bitcoin is trading for $29,981 at time of writing, down 0.2% during the last 24 hours.
Sherpa is also weighing in on when the altcoin market may rally. He says there are three main situations that tend to indicate money has started to flow back into alts.
“There are three peak times for altseasons. I’ll probably do a thread on this next week, but here are a few basic principles to think about.
1) BTC ranges (healthily)
2) Bitcoin goes up a lot
3) It’s December/January
These three are somewhat related but also separate.”
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Generated Image: Midjourney