For Dogecoin, the weekend was extremely positive. Elon Musk’s fallout propelled the dog-headed token into the top 10 valuations again. But what about the longer term? Trader Peter Brandt recently gave his opinion on this issue. According to him, better days are ahead for Dogecoin.
A look back at the recent evolution of Dogecoin price!
For the past few weeks, it has been hard to find a better crypto investment than Dogecoin. As shown in the graph below, taken from the Coinmarketcap platform, the meme token, which is beloved by Elon Musk, has seen a meteoric rise in the past few days:
The American billionaire is also no stranger to the sharp rise in Dogecoin over the past few days. The sign was prompted by confirmation of the Twitter takeover. If the token is trading near $0.12 today, the asset has reached the $0.15 threshold this weekend.
By focusing on the top 100 biggest crypto caps, the Dogecoin shows the strongest advance in the last 7 days. As of this writing, the price of Dogecoin is up more than 92% since Monday, October 24th. Over a 30-day period, Dogecoin is second in uptrends: +87%. The meme signal is higher only at the HT signal of the Huobi platform.
In any case, this strong advance of the weekend allows Dogecoin to reach the top 10 of the largest crypto market. More than $15 billion. A level that allows Dogecoin to get ahead of projects like Solana or Cardano. That’s exactly it!
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Peter Brandt believes the Dogecoin bear market is over!
Trader Peter Brandt recently spoke about DOGE. And the news seems to be positive. In fact, the American businessman believes that the bearish market around Dogecoin is coming to an end. As he explains on his Twitter account, Dogecoin has been moving within a bearish channel since May 2021. This weekend’s move allowed the asset to break this momentum that was active for almost 18 months.
This is called a bear channel, and its upside breach ended the bear market that started at the May 2021 high. $DOGE pic.twitter.com/pZT5yxMje6
— Peter Brandt (@PeterLBrandt) October 30, 2022
Good to know: A bearish channel is formed by a support line and a resistance line. This is a very simple technical setup that is widely used by traders. Invalidation of the downtrend channel may occur when the resistance level is breached. Which just happened this weekend.
A warning is still in order!
A breakout from the channel does not necessarily indicate a sustained trend change. In fact, the possibility of a false channel exit cannot be excluded. In recent months, traders are often accustomed to false signals in the market. Despite the recent rise, Dogecoin is still trading far from its all-time high near $0.73. A large number of traders are still losing on this asset.
Moreover, imagining the end of the bear market on an asset would be almost equivalent to announcing the end of the bear market on the entire crypto market. If Dogecoin emerged this weekend on the crypto market side, it is hard to imagine that the trend will continue in the long term. In other words, if Bitcoin falls, the crypto market will dive with it. And it is hard to imagine that Dogecoin can escape from this rule. To that end, the monetary policy decisions of the European Central Bank and the FED will continue to keep the attention of the markets for several months.
