Crypto analyst Nicholas Merten on Wednesday said that Dogecoin DOGE/USD, the popular memecoin, could see a rally by the end of 2023 or in early 2024.
What Happened: Merten in a video update indicated that blue-chip accumulation might begin when Dogecoin is roughly 95% from its all-time high.
By his estimation, smart money tends to accumulate altcoins such as DOGE when they are offered at significantly reduced prices.
“Smart money, the accumulators, are looking at these prior discount ranges, they're looking to build positions around these ranges. We're going to be coming around 95%, somewhere in this ballpark range," he said.
“Smart money,” refers to institutional investors, high-net-worth individuals, or other sophisticated investors who are known for making sizable purchases or investments in financial markets.
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Why It Matters: Merten warns that there could still be significant declines in store for the DOGE before it triggers an upward rally.
“If you take that same range that was around 5 cents back in June, and if we take it towards say 95%, you're talking about a price level that's all the way down to $0.35. If we go all the way down to 96.5%, you're talking about $0.25. So again, you could be facing some significant paper downside on your positions. It could take all the way out into 2024; it could be at the end of this year,” Merten added.
Price Action: At the time of writing, DOGE was trading at $0.059, down 3.13% in the last 24 hours, according to Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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