Dogecoin, the world’s largest meme coin by market capitalization is now flashing a big sale signindicating that it may be time for investors to exit quickly and sell their tokens before a potential decline. This sudden sell signal comes as the Dogecoin price jumped 10% following a recent comment from SpaceX and Tesla’s Chief Executive Officer (CEO) Elon Musk.
Dogecoin price flashes sell signal
Dogecoin recently piqued investor interest after its price dramatically rose more than 10%, surpassing the $0.127 mark in one day. THE massive price increase was driven by social media hype and continued speculation about future endorsements from Musk, following his statements of “Department of Government Efficiency (DOGE)proposal.
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Despite Dogecoin’s considerable rise, analysts warn that the jump in price may be signaling a imminent liquidation. Particularly, Ali Martineza popular crypto analyst took to X (formerly Twitter) to to warn users that the meme coin was currently issuing a sell signal on the Dogecoin daily chart.
Although optimism regarding Dogecoin has turned bullish following its price rise, it appears that investors may have to exit the market quickly to preserve your new profits. While some loyal Dogecoin investors may hold onto their holdings for the long term, short-term investors may be tempted to cash in on recent gains.
Based on the Dogecoin sell signal chart, Martinez predicts that the meme coin may experience a brief period of decline, typically seen when meme coins experience sharp spikes. However, the analyst also predicted that after this brief correction, Dogecoin could continue its upward momentum to reach new levels.
The cryptocurrency is currently trading at $0.1446, a significant increase from its price earlier this month, which was around $0.11 at one point. Data from CoinMarketCap also revealed that Dogecoin soared an impressive 30.49% last week and is up 38.81% in the last month.
It is clear that the popular meme coin is in a major uptrend as its chart has been green for some time now. Although Dogecoin has seen some drops previously, investor optimism towards the meme coin is high as its daily trading volume increased by 12.29%.
Analyst says Dogecoin will reach $1
A crypto analyst identified as ‘Crow’ on X confidently predicted a big bullish for Dogecoin. On October 18, the analyst predicted that the price of Dogecoin would go to $1 soon, possibly riding the wave of the upcoming crypto bull run.
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The analyst shared a distinct historical chart of Dogecoin covering the period from 2014 to the present, highlighting how the cryptocurrency had previously experienced surprisingly similar market movements before reaching a higher price. In line with this trend, Dogecoin appears to have created another unique triangle pattern that began in 2021 and continued into 2024.
It is possible that with the complete formation of this triangle pattern, Dogecoin could see a Potential increase to $1. Although the predictions remain ambitious speculation, Crow remained confident, emphatically declaring that Dogecoin is the Bitcoin of meme coins.
Featured image created with Dall.E, chart from Tradingview.com