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.
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Trouble for DOGE?
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.
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?
