Dogecoin

Resistance

Rekt

Dogecoin (DOGE) enthusiasts may need to temper their optimism, as a prominent cryptocurrency analyst warns of a looming deep pullback. The meme coin’s recent struggle to breach a critical resistance level has raised concerns about its short-term prospects. 
In the world of cryptocurrency trading, resistance levels play a crucial role. These levels represent price points where an asset has historically struggled to move past. Resistance levels are significant because they reflect the collective sentiment of traders and investors. When an asset encounters resistance and fails to break through, it often signifies a lack of buying pressure and can lead to a reversal in price. 
At the time of writing, Dogecoin is trading at approximately $0.067399 via <a href="https://www.coingecko.com/en/coins/dogecoin" target="_blank" rel="noopener nofollow">CoinGecko</a>, experiencing a 2.6% dip in the last 24 hours, although it has seen a modest 1.9% increase over the past seven days. The recent price movement, however, has raised concerns among traders and analysts. 
<h2 id="strong-rekt-capital-s-bearish-dogecoin-prediction-strong">Rekt Capital’s Bearish Dogecoin Prediction</h2> 
Respected crypto analyst Rekt Capital, who shares insights on the social media platform X, has <a href="https://twitter.com/rektcapital/status/1719083308636676514" target="_blank" rel="noopener nofollow">issued a warning</a> about Dogecoin’s potential downside. 
According to Rekt Capital, Dogecoin’s price action in the past week indicates a possible drop to its support level at around $0.053. 
<blockquote class="twitter-tweet"> 
 <a href="https://twitter.com/search?q=%24DOGE&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">$DOGE</a> 
 Complicated Weekly Close for <a href="https://twitter.com/hashtag/dogecoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#dogecoin</a> 
 1W Close occurred below the Channel Top resistance 
 This means that the <a href="https://twitter.com/hashtag/doge?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#doge</a> breakout is postponed 
 Previous 1W Closes like this -&gt; downside 
 However if DOGE can hold the highs and reclaim the Channel Top as support – there may… <a href="https://t.co/oChRDTWvcc" rel="nofollow" target="_blank">https://t.co/oChRDTWvcc</a> <a href="https://t.co/HdrQHXTB1h" target="_blank" rel="noopener nofollow">pic.twitter.com/HdrQHXTB1h</a> 
 — Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1719083308636676514?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">October 30, 2023</a>
</blockquote> 
Rekt Capital’s analysis is based on the weekly close of Dogecoin’s price chart. They observed that the weekly close occurred below a crucial channel top resistance, which suggests a delay in DOGE’s breakout. Historically, similar weekly closes have often led to downward price movements. 
However, Rekt notes that there is still hope for Dogecoin if it manages to hold its recent highs and reclaim the channel top as a support level. 
<h2 id="strong-growing-open-interest-in-doge-and-shib-futures-strong">Growing Open Interest In DOGE And SHIB Futures</h2> 
In a separate development, <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="noopener nofollow">open interest</a> in Dogecoin futures has surged by over 40%. This significant increase in open interest indicates that traders are placing larger bets on the future price movements of these cryptocurrencies. Such a surge in open interest often signals an expectation of increased volatility in the coming days. 
<img decoding="async" loading="lazy" class="aligncenter wp-image-262384 size-large" src="https://bitcoinist.com/wp-content/uploads/2023/11/a-4-980x347.png" alt="" width="980" height="347" srcset="https://bitcoinist.com/wp-content/uploads/2023/11/a-4-980x347.png 980w, https://bitcoinist.com/wp-content/uploads/2023/11/a-4-640x226.png 640w, https://bitcoinist.com/wp-content/uploads/2023/11/a-4-768x272.png 768w, https://bitcoinist.com/wp-content/uploads/2023/11/a-4-750x265.png 750w, https://bitcoinist.com/wp-content/uploads/2023/11/a-4-1140x403.png 1140w, https://bitcoinist.com/wp-content/uploads/2023/11/a-4.png 1241w" sizes="(max-width: 980px) 100vw, 980px"> 
The rise in open interest suggests that market participants are gearing up for more price swings, and this can be driven by a variety of factors, including major news events, changes in market sentiment, or the anticipation of new developments in the cryptocurrency space. 
Rekt Capital’s analysis serves as a cautionary note for DOGE enthusiasts, and the surge in open interest indicates a growing appetite for volatility among traders. As the cryptocurrency market continues to evolve, it is essential for investors to stay vigilant and adapt their strategies to navigate the ever-changing landscape of digital assets. 
Featured image from Shutterstock

Dogecoin Bulls On Hold: Analyst Cautions Vs. Premature DOGE Expectations

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