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Here’s why a veteran analyst called Dogecoin a “doubled-headed monster”

Here’s why a veteran analyst called Dogecoin a “doubled-headed monster”
Image by M W from Pixabay

Key Takeaways

  • Veteran investor Peter Brandt trolls Dogecoin
  • The head and shoulders affect on the charts indicates possible sell-offs
  • Trouble for Dogecoin as huge price drops predicted.

YEREVAN (CoinChapter.com) — Dogecoin started as a meme token, then rose to prominence thanks to celebrity endorsement. However, it has mostly remained a joke, except for the few bullish runs it registered midway.

George Bernard Shaw once remarked, “My way of joking is, to tell the truth; it is the funniest joke in the world.”

Veteran investor Peter Brandt has just done that. 

Taking on Twitter to break the news of Dogecoin’s eventual decline, Brandt posted a picture of the chart showing Dogecoins performance.  

“Do you believe in double-headed monsters $DOGE ? ” he asked.

Clearly, Dogecoin will not appreciate his joke. 

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What is the head & shoulders pattern for Dogecoin?

When using charts to understand in what direction a certain asset is headed, analysts look at the flow patterns to determine if the trends are bullish or bearish.

One of the most reliable and common patterns that result in bulk buys or sell-offs is the head and shoulder pattern. It is indicated by three peaks, with two smaller peaks on the sides and a larger peak at the center. The smaller peaks indicate the left and the right shoulder, while the larger peak in the middle indicates the head.

The line at which the three peaks meet is called the neckline or the support, which shows the price below which sellers prevent falling.

However, once a head and shoulders pattern is formed, investors sense a further deep in prices in the future and wait for the prices to go below the neckline before buying. Traditionally, the distance between the top of the highest hill (the head) and the neckline is subtracted from the neckline to get the target price to buy in.

Recommended: Dogecoin jumps 21 percent on Elon Musk’s Twitter promotion.

Trouble for DOGE?

Taking on Twitter to troll Dogecoin, Brandt posted a picture of the chart showing Dogecoins performance, predicting a decline.
Charts predict a possible steep fall for Dogecoin. Credit: DOGEUSD on TradingView

Whether Peter Brandt was sarcastic or he was joking is for him to say. However, on a close analysis of the chart, we see that his joke sends out a serious message to Dogecoin investors. Inevitable, Doge seems to be headed South. Very, very South.

Considering that investors will possibly start dumping DOGE and potential buyers will be waiting for the lowest possible buy point, the prices of Dogecoin could drop down to meager 10 cents per DOGE.

That is a 64% drop from the neckline of 0.27.

The prediction of a huge dump also becomes real, with the possible death cross looming right below 0.27. With the possibility of the EMA and daily average MA crossing paths, large sell-offs can send the prices of Dogecoin plummeting. It currently trades at $ 0.17.

Dogecoin is currently trading at $0.17. Credit:-DOGEUSD on TradingView
Dogecoin is currently trading at $0.17. Credit:-DOGEUSD on TradingView

We have to wait to see whether or not DOGE will take the big hit that Brandt humorously indicates. However, at this moment, all eyes will be on Elon Musk. Will the Dogefather step in to save his beloved coin from regaining its reputation as a joke?

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Karen Mkrtchyan

Yerevan-based Editor and writer focusing on topics about politics and international relations. Having completed his Bachelors and Masters degrees from Delhi's Jawaharlal Nehru University, he currently works as a Projects Coordinator at Indo-Armenian Friendship NGO and the Indian Cultural Centre, Armenia. He regularly writes articles for Armenian media platforms and is the English language Editor of Keghart, a reputed Armenian Diaspora news platform based in Canada. As a young activist, he was awarded "The Best Active Youth International Award" by the Afghanistan Youth Parliament. He is also the Media in charge of the Youth Wing of Bright Armenia Party, the third-largest political party in the Armenian Parliament.

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