Crypto analyst Nicholas Merten warns that memecoin Dogecoin (DOGE) is probably not done correcting against Bitcoin (BTC) yet.
In a new video update Merten tells According to his 512,000 YouTube subscribers, 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 really believe that things will go up and to the right in the future. I just don’t think they’re going to do that anymore.
I have 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 gains just disappearing without consequence, 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%, several months. 73%, 79%, 114% in one month. That’s what I’m looking for. And maybe Dogecoin won’t deliver such optimistic results. But man, I saw like 10%, 20%, 30% months in a row before I really started getting excited.”
According to Merten, Dogecoin is only worth a look if DOGE/BTC starts to repeat similar moves as in June and October 2022.
“I don’t care [current trend]… From buyers in June [2022], a 23% move, barely closing any of these gains, holding them there and then making a 94% move. I understand there’s some nuance with maybe Elon [Musk] said Twitter would use DOGE or whatever.
Look, whatever. It doesn’t matter what the story is. What matters is the price action. Because whatever those stories are, if price stops showing interest in that range, and we keep moving lower, and no buyers come in, we’re probably going to keep moving lower and lower.
It is a progressive effect of weakening expectations. People are slowly coming to the realization that they are overexposed, that what they thought was a dip is still too high. And only until you really get that pressure from the market buying side are these assets going to move.”
Merten expects a correction of around 90%, which would mean that DOGE/BTC would find its market bottom around 0.00000130.
DOGE/BTC is trading at 0.00000218 BTC ($0.0582) at the time of writing.
Generated image: Midjourney
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