Closely followed crypto analyst Justin Bennett says that sizable downward moves are coming for two large-cap digital assets as Bitcoin trades below the $20,000 level.
Bennett tells his 101,000 Twitter followers that leading memecoin Dogecoin (DOGE) has broken down from a rising wedge pattern, which indicates the resumption of the downtrend.
According to the crypto analyst, DOGE could reach as low as $0.035, which is roughly 47% below current prices.
“Textbook retest from DOGE following the breakdown the other day.
I still think $0.05 and potentially even $0.035 are in play.”
At time of writing, DOGE is changing hands for $0.66.
Looking at blockchain-based supply chain management system VeChain (VET), the analyst says that after VET failed to sustain its breakout from an inverse head and shoulders pattern, a bearish retest of lower prices is in the cards.
According to Bennett, a 37% plunge to the $0.016 level is in play for VET if it loses the $0.022 range.
“VET inverse head and shoulders failed at $0.024.
Currently trading below $0.022 on a four-hour basis basis.
We’ll see where today closes, but below $0.022 is $0.02 and $0.016.“
VET is trading at $0.022 at time of writing.
The analyst also has his radar locked on Ethereum rival Solana (SOL). He previously said that based on its weekly timeframe, a retest of $20 “seems likely” in the coming weeks with SOL’s key resistance levels sitting at $37.40 and $39.25.
Bennett doubled down on his Solana call on Friday after SOL broke down from an ascending channel and converted the channel’s diagonal support into resistance. A drop to $20 would represent a 34% haircut for SOL from current prices.
“SOL with a bearish retest of the channel I discussed on the 29th.
I still think it wants $20 before any significant bounce.”
At time of writing, SOL is swapping hands at $32.96.
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Source: https://dailyhodl.com/2022/07/03/steep-corrections-incoming-for-dogecoin-doge-and-vechain-vet-according-to-analyst-justin-bennett/