Dogecoin (DOGE) continues to rise sharply. In the last 24 hours, the cryptocurrency has returned to a significant appreciation, exceeding 27%. In the accumulated weekly, the gains are already 105%.
However, some traders have begun to point out the problems with this euphoria. One of them is the trader known on Twitter as lowstrife.
The trader compared the 90% collapse exhibited by XRP in 2017 with the current DOGE movement, drawing strong similarities. In this way, DOGE can melt 50% in a few hours.
It all depends on the best-known Dogecoin defender: Elon Musk. He will participate in a famous program on Saturday (8), and everything can change after that.
Less intense rallies
According to the trader, DOGE’s valuations are becoming less intense. In addition, he says the time it takes for cryptocurrency to hit strong highs is getting longer.
“Each of the main peaks at DOGE this year was smaller and less aggressive. What used to take 18 hours at the beginning has been underway for 2 days now ”, he explained.
In his analysis, he compares DOGE with other bubbles that have appeared on the market. However, it highlights that the current bubble level is much higher. Only in 2021, the cryptocurrency went from R $ 0.02 to more than R $ 3.
In terms of BTC, he warns: “0.00000130 BTC to 0.00000150 BTC has been the resistance for several bubbles in each cycle. We are 10 times beyond that, so be careful. ”
DOGE and XRP
Lowstrife also warns of the similarity of DOGE’s current moment with something that happened in the past. He points out that, between 2017 and 2018, the XRP followed a similar movement.
In that movement, the XRP followed with ever-decreasing appreciation tops. Then, the native token of the Ropple network had a strong upward movement. However, this was the final discharge phase.
In 2018, when the euphoria ended, XRP underwent a strong correction – losing about 90% of its value. The price plummeted from about R $ 11 in January 2018 to just R $ 1.63 in March.
For the trader, DOGE is making exactly the same move. However, the cryptocurrency is still in the bullish phase. The chart below, published by him, illustrates the comparison.
Finally, lowstrife warns that May 8 could be decisive for DOGE. This will be the date that Elon Musk will make his presentation on the famous program Saturday Night Live.
Musk is one of DOGE’s greatest enthusiasts and supporters. So there is a lot of expectation about the impact of his participation in the price of the cryptocurrency-meme.
Other traders give their opinion on scenarios
In addition to lowstrife, other market analysts and traders have voiced their views on DOGE. For Michaël van de Poppe, whoever profited from the cryptocurrency must guarantee their profits.
For those who did not buy, van de Poppe reinforces that it is better to be left out at the present time.
“These heavy vertical (bullish) movements on altcoins usually end in a nightmare for most,” he warns.
The trader who goes by the pseudonym Kaleo warns that DOGE can follow two paths. In the fall, however, he points out that new entry points may appear for those who still want to invest in DOGE.
“DOGE can easily go back to mid $ 0.50, but it can also go back to $ 1. I’m inclined to the first scenario as the most likely. This would be an excellent buying opportunity for anyone looking for an entry. I remain bought anyway, ”he said.
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