A closely followed crypto strategist is warning that Dogecoin (DOGE) may be on the verge of a deep pullback after failing to take out a key resistance level.
Pseudonymous analyst Rekt Capital tells his 363,900 followers on the 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 positioned to fall to its support at around $0.053.
“Complicated weekly close for Dogecoin.
[Weekly] close occurred below the channel top resistance.
This means that the DOGE breakout is postponed.
Previous weekly closes like this -> downside
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 appears that DOGE needs to convert resistance at $0.07 into support on the weekly chart to confirm the channel breakout.
At time of writing, DOGE is trading for $0.0697.
The crypto strategist is also watching the price action of Ethereum (ETH). Rekt Capital says that Ethereum looks primed for a rally after flipping resistance at $1,600 into support.
“Forming a range between orange support and green resistance.
Since BTC broke out from its own re-accumulation range…
Perhaps ETH should be next.”
At 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 that FET will likely witness a bullish continuation if it stays above its monthly support at $0.3633.
“+77% rally…
Revisited black and even pressing beyond it.
Black needs to hold as support if FET is to rally higher (yellow circle).”
At time of writing, FET is trading for $0.363.
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Featured Image: Shutterstock/JeannieR
Source: https://dailyhodl.com/2023/10/31/crypto-analyst-issues-dogecoin-warning-says-doge-breakout-is-postponed-after-complicated-weekly-close/