Crypto analyst Nicholas Merten is issuing a warning that memecoin Dogecoin (DOGE) is likely not finished correcting against Bitcoin (BTC).
In a new video update, Merten tells his 512,000 YouTube subscribers that he expects Dogecoin to remain in a bearish trend against Bitcoin for a while as the monthly DOGE/BTC chart continues to show weakness.
“I do believe that things will go up and to the right in the future. I just don’t think they’re going to do it yet.
I got to say, if this is new support and all we see is a 22% move [up] on a monthly candle followed by three months of just fading those gains with no follow through, that’s not a bull market.
We can see what Dogecoin looks like in a bull market – 600% moves in a month, 542%, even towards more moderate months, 80%, 30%, 209%, multiple months. 73%, 79%, 114% in a single month. That is what I’m looking for. And maybe Dogecoin isn’t going to produce such optimistic results. But man, I got to see some 10%, 20%, 30% months in a row before I start to really getting excited.”
According to Merten, Dogecoin is only worth looking at if DOGE/BTC starts to repeat similar moves to June and October of 2022.
“I don’t care about this [current trend]… From buyers in June [2022], a 23% move, barely closing any of those gains out, holding them up there and then having a 94% move. I understand there’s some nuance with maybe Elon [Musk] was saying Twitter was going to use DOGE or whatever.
Look, whatever. It doesn’t matter what the narrative is. What matters is the price action. Because no matter what those narratives are, if price is not showing that it’s interested at that range anymore, and we’re moving lower and lower, and there’s no buyers coming in, we’re likely going to continue moving lower and lower.
It’s a rolling effect of weakening expectations. People slowly coming to the realization that they were overexposed, that what they thought was a dip is still too high. And only until you really get that market buy-side pressure will these assets start to move.”
Merten is anticipating a roughly 90% correction, which would mean DOGE/BTC would find its market bottom around 0.00000130.
DOGE/BTC is trading at 0.00000218 BTC ($0.0582) at time of writing.
Generated Image: Midjourney
I