Key Takeaways:
- Dogecoin's 150% rally halted on Oct 30.
- Peter Brandt says DOGE ended its bear market, but doesn't favor the bulls quite yet.
- The meme coin could erase some of the gains, as it holds support at $0.12.
YEREVAN (CoinChapter.com) – Dogecoin (DOGE) made headlines last week, as it broke the $0.1 barrier in a massive 150% rally Oct 25-29. The token hit $0.15 on Saturday but corrected downward since and held support at $0.12 in the Asian-Pacific session on Oct 31. Meanwhile, named author and CEO of Factor trading firm Peter Brandt thinks Dogecoin “ended” its bear market.
Peter Brandt Says DOGE is Out Of The Woods
Brandt tweeted about the famous spoof coin on Oct 30, noting the rally and the break above a significant resistance. The comment section interpreted the tweet to mean a bull market for Dogecoin. However, the response prompted the CEO to issue a further comment, explaining the bear channel’s “upside violation.”
A common mistake made by novice and wanna-be traders is assuming that an end to a bear phase of a market is automatically a signal that a bull market has begun. This assumption is most often wrong.
added Brandt.
As CoinChapter reported previously, the Dogecoin market saw a healthy influx of funds during the hype around ‘dogefather’ Elon Musk and his Twitter buyout deal. However, a Dogecoin whale transferred $40 million worth of DOGE to an exchange, which intensified sell-off fears among investors.
As noted above, the rally halted on Oct 30, with more losses to come.
Dogecoin(DOGE) Price Could Erase More Gains
Dogecoin(DOGE) price has been trading within a bear channel since Q2 2022. The formation entails two parallel trendlines that drive the asset price lower through consecutive support and resistance retests.
A bearish channel is a neutral formation, as it does not predict a specific bias after the token exhausts the formation. However, it has been instrumental in determining short-term price fluctuations. DOGE broke the channel to the upside on Oct 26. However, as Peter Brandt noted in his tweet, the rally does not mean a bull market ahead.
What’s Ahead?
The buying pressure also spiked Oct 25-29, but the trading volumes subsided in the following days, exacerbating the selloff fears. The ongoing correction could erase the rally partially, taking DOGE down to $0.109 support in the upcoming sessions.
Also read: Bitcoin bottom is likely here, say analysts and indicators.
The Musk/Twitter hype successfully pumped the meme coin. However, it could not lastingly sustain Dogecoin in a ubiquitous bear market. Thus, traders should watch the broader economy and the Bitcoin charts for cues.
Click here for more news on all things crypto, and keep up with the ever-changing market!
