Crypto Analyst Sees Musk's Favorite Coin Plunging Over 90%: 'What Truly Matters Is Price Action'

Crypto analyst Nicholas Merten on Thursday compared the future performance of Dogecoin DOGE/USD against Bitcoin BTC/USD, suggesting a significant correction may be on the horizon.

What Happened: In a YouTube video, Merten said the trajectory of Dogecoin lacks the typical bullish characteristics seen in a bull market. He stated, “For me to believe in a bullish Dogecoin, we’d need to witness consecutive monthly increases of 10%, 20%, or 30%.”

Drawing on past examples, Merten shared instances where Dogecoin experienced substantial spikes, such as 600%, and 542%, and even ranges between 30% to 209% within a single month.

Merten emphasized that Dogecoin’s real potential would emerge if it followed a similar pattern to its behavior in June and October 2022 against Bitcoin. 

He stressed the importance of price action, stating, “Beyond any narratives or external influences on coins, what truly matters is their price action. If the price isn’t garnering interest and we observe a continuous descent with a scarcity of buyers, it’s a signal that the downward trend might persist.”

Based on current trends and his analysis, Merten anticipates a significant correction for Dogecoin, projecting a potential decline of nearly 90%. This would indicate that the DOGE will reach $0.0057.

Will The SEC Finally Approve Long-Awaited Bitcoin Spot ETF? Ask industry experts directly at Benzinga's Future of Digital Assets event happening in NYC on Nov. 14, 2023. Be a part of the discussions where you won't just be a passive spectator. Don't let this chance slip away – secure early bird discounted tickets now!

See More: A Stay At The Floating Palace From James Bond's ‘Octopussy

Why It Matters: Last week, Crypto Tony noted that Dogecoin will experience a rally only if there is sufficient demand from the bulls. "So we are hanging tight on that support zone." 

The support zone indicated on Crypto Tony's chart was identified at $0.060. Crypto Tony further explained, "I will have to short if we lose that level, but if the bulls can find some demand here and pump, then we can long. Two triggers for an entry, which one hits."

Price Action: At the time of writing, DOGE was trading at $0.058, down 0.56% in the last 24 hours, according to Benzinga Pro.

Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?

Image created using AI via MidJourney