The popular meme-coin of Dogecoin (DOGE) could be gearing up for a correction to the $0.08 price area. This is according to an analysis shared
by Timothy Peterson of Cane Island Alternative Advisors who also explained that the $0.08 price was hinged on a crypto-wide bear market lasting six to nine months.Mr. Peterson went on to explain that his analysis was based on math as Dogecoin had broken what is called ‘a rank-size distribution pattern’ as of April 18th.
His analysis of Dogecoin can be found below alongside a chart that he shared demonstrating how DOGE had deviated from the rank-size distribution pattern when compared to other altcoins.
This [chart below] is called a rank size distribution. This is the largest 30 coins and their 7-day return. There is a pattern that $DOGE has broken. This deviation is temporary. This current situation implies Doge will lose 80%.
In another analysis of Dogecoin, Bitfinex Whale @Joe007 was for the opinion that the crypto markets were currently overvalued if DOGE was still above $0.01. @Joe007 shared his opinion of Dogecoin through the following Tweet.
At the time of writing, Dogecoin is trading at $0.269 after an energetic bounce from last week’s low of $0.16322 that also converged with the 200-day moving average (green) price zone. Dogecoin is currently trying to break past the 100-day moving average (yellow) that has formed a resistance level at the $0.28 price area as seen in the chart below.
Also from the chart, it can be observed that the daily MACD, MFI and RSI, all confirm the aforementioned trend reversal for Dogecoin.
However, a death cross is in the pipeline for Dogecoin (DOGE) as the 50-day moving average (white) looks set to cross the 200-day moving average, sometime in the third quarter of 2021. Therefore, caution is advised when trading Dogecoin in the next few weeks.