thecryptobasic.com
Despite Dogecoin joining the broader crypto market downturn, a notable analyst has advised against selling or shorting the meme coin alpha.
The doggy-themed meme coin started the week bullish, surging to an intra-week high of $0.3989. However, the token has retraced over 12% from this peak and almost relinquished last week’s gains despite speculation that it would soon outdo Bitcoin and XRP.
Meanwhile, analyst Trader Tardigrade argues that the dip is not a sell signal. In a recent analysis, he recommended that traders do not sell or short Dogecoin, as the correction is part of a greater bullish picture.
Dogecoin Retesting Ascending Triangle’s Apex
Trader Tardigrade insinuated that Dogecoin’s retracement is still part of its bullish plans. He shared in a tweet that the largest meme coin by market cap was simply retesting the apex of its ascending triangle.
An accompanying chart to the analysis shows that Dogecoin broke out of the bullish ascending triangle with a price upswing past the structure’s base at $0.3435 on January 3. The leading meme coin’s bullish momentum endured until it lost steam at $0.3989 four days later.
Meanwhile, the chart shows a potential rebound from the current area to unprecedented heights. Dogecoin will target a 182% push past its current all-time high of $0.7488 to areas around $0.9500.
Crucial Support for Dogecoin
Analyst Crypto Zeinab shares a similar stance with Trader Tardigrade’s commentary. The seasoned market speculator noted in a January 8 tweet that Dogecoin has reached crucial support.
Per an accompanying chart, the support zone lies around the base of Trader Tardigrade’s ascending triangle. Meanwhile, Zeinab asserted that Dogecoin could rebound from the demand zone, with his chart showing a retest of the intra-month high at $0.3989.
However, if Dogecoin loses the $0.3435 support level, the analyst expects the demand wall at the 0.618 Fibonacci extension to wedge against lower prices. Notably, the Fibonacci level lies at $0.2730, an area that cushioned Dogecoin’s December 20 capitulation.
In the meantime, Dogecoin trades at $0.3340, down 3% in the past day.