Dogecoin 'Looks Like It's In Trouble', Warns Crypto Analyst, Sees DOGE In For A Deeper Correction: 'Wear An Extra Shirt Incase You Lose The First One'

A pseudonymous cryptocurrency analyst on Thursday said the top meme cryptocurrency Dogecoin DOGE/USD "looks like its in trouble."

What Happened: Crypto analyst Bitgolder said in a post on TradingView, "Short term Doge looks like it’s in trouble. It looks like a big move down is imminent."

Explaining the reasoning behind the worry, Bitgolder pointed to what they described as a ‘bearish pennant’ and a crossover of short-term and long-term moving averages — two technical signals that some traders believe might prelude a drop. 

The analyst also drew attention to similar occurrences impacting another cryptocurrency. “If Bitcoin BTC/USD drops to the 50s, then expect this to happen 100%," the analyst wrote, meaning that a significant fall in Bitcoin's price would likely precede a similar plunge for Dogecoin.

The analyst adds, "I could be wrong and this is a fake out and we blast to the upside but look at Litecoin and what happened when the 50 crossed over the 100 just recently and now the 50 is crossing over the 200 on Litecoin LTC/USD."

What It Means: The “50” and the “100” that the analyst is referring to are moving averages – indicators used by traders to identify the momentum by averaging the closing prices of an asset over specific time frames. A “50” would be the 50-day moving average and the “100” the 100-day moving average. In technical analysis, when a shorter-term moving average crosses over a longer-term one (like the 50 crossing over the 100), it is known as a “golden cross” and is considered a bullish sign for the asset, indicating a potential long-term rise in price.

However, here the analyst seems to be referring to a “bearish cross,” which is the opposite situation and generally occurs when a short-term moving average crosses below a long-term average, often interpreted as a bearish (negative) signal for price movement.

 "Could be a fire sale if a person is in the right place at the right time. WEAR AN EXTRA SHIRT IN CASE YOU LOSE THE FIRST ONE," the analyst adds.

See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals

Why It Matters: Meanwhile, another analyst Altcoin Sherpa offered an optimistic perspective, foreseeing a possible upward journey for Dogecoin to the $1 mark. 

Altcoin Sherpa identified specific price thresholds — $0.20 and $0.35 — as critical milestones that could pave the way for further gains. In their view, Dogecoin’s chart signals an encouraging trajectory after a prolonged period of little movement.

In addition, data from IntoTheBlock has signaled a positive trend for Dogecoin’s investor demographics, with a noticeable increase in the number of ‘DOGE millionaires.’ These are investors whose holdings exceed the value of $1 million, a group that has grown to over 800. This swell in prominent investors suggests a strengthening investment base for Dogecoin.

Price Action: At the time of writing,  DOGE was trading at $0.16, up 7.99% over the last 24 hours.

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