A closely watched crypto strategist is warning that Dogecoin (DOGE) may be on the verge of a deep pullback after failing to reach a key resistance level.
Pseudonymous analyst Rekt Capital tells his 363,900 followers on social media platform X that Dogecoin respected its multi-month diagonal resistance last week.
According to the trader, DOGE’s price action last week suggests that the memecoin is in a position to fall to its support around $0.053.
“Complicated weekly close for Dogecoin.
[Weekly] close occurred below the channel top resistance.
This means that the DOGE outbreak is postponed.
Last week closures like this -> minus point
However, if DOGE can hold the highs and reclaim the channel top as support, there may still be a chance.
Looking at the trader’s chart, it looks like DOGE needs to turn the $0.07 resistance into support on the weekly chart to confirm the channel breakout.
At the time of writing, DOGE is trading at $0.0697.
The crypto strategist also keeps an eye on Ethereum (ETH) price action. Rekt Capital says Ethereum looks poised for a rally after $1,600 resistance turned into support.
“Forming a range between orange support and green resistance.
Since BTC broke out of its own reaccumulation range…
Maybe ETH should be next.”
At the time of writing, ETH is worth $1,813.
The last altcoin on the trader’s radar is the decentralized machine learning network Fetch.ai (FET). Rekt Capital says FET is likely to witness a bullish continuation if it remains above its monthly support at $0.3633.
“+77% increase…
Black revisited and even gone further.
Black must hold as support if FET wants to move higher (yellow circle).”
At the time of writing, FET is trading at $0.363.
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Featured image: Shutterstock/JeannieR
