Dogecoin roller coaster under Musk’s “magic” control!
On March 12, Musk tweeted a dog head emoji, and Dogecoin soared 30% in 30 minutes, and the exchange server was paralyzed for a time. The next day, the US SEC announced an investigation into the exchange, and Dogecoin instantly plunged 15%, with a market value of $20 billion evaporated. On March 14, Musk again released the news that "SpaceX accepts Dogecoin payments", and the price soared 40%. However, he holds 150 million Dogecoins and may cash out at high prices at any time, so retail investors can only passively chase the rise and sell the fall.
Musk's "financial sickle" three consecutive strikes accurately harvested the market. He manipulated public opinion, guided market sentiment through Twitter, and triggered an influx of funds; he pushed merchants to accept Dogecoin payments, actually looking for buyers for his huge holdings; what's more terrifying is that he may also be hedging short options on the dark web and enjoying the huge profits brought by market fluctuations.
The Dogecoin market is full of dangers, with insufficient liquidity and an average daily trading volume of only $3 billion. Any slight sell-off will trigger violent fluctuations. Institutions are secretly shorting, the derivatives market is deserted, and risks are accumulating. As regulatory pressure escalates and the SEC's review of trading platforms becomes stricter, the risk of Dogecoin being classified as a security is imminent, and retail investors may be stuck in the quagmire at any time.
How long can Dogecoin last? Analysts say the cup-handle pattern may push DOGE to 4!
Crypto analyst David pointed out that Dogecoin (DOGE) may be forming a classic cup-handle pattern on the weekly chart, and once it breaks through, the theoretical target price can reach $4.
The “cup” portion of the pattern began when DOGE plunged from its all-time high of $0.74 to a long-term consolidation zone of $0.05-0.06 in May 2021, followed by a rebound to $0.48 in December 2024. However, after hitting this resistance level, DOGE suffered a pullback, with prices falling back to the $0.14-0.17 range, forming a potential “handle” structure.
Although the cup-and-handle pattern usually indicates a breakout, some analysts have reservations about the validity of this pattern. First, DOGE's downtrend lasted too long. The classic cup-and-handle pattern is usually completed in weeks to months, not years. In addition, the retracement depth is too large. A healthy handle generally does not fall below 50% of the cup depth, while DOGE's current retracement is close to 65%.
Currently, the market is at a critical decision point. If DOGE breaks through the $0.48 pressure level and stands firmly above it, it may trigger a new round of gains. However, if the correction intensifies, the cup-handle pattern may fail, and DOGE still needs to go through a longer period of consolidation. Investors need to pay close attention to key resistance and changes in market sentiment to seize potential opportunities.
Today's article ends here. We are currently in a bull market, and the situation is turbulent. We share passwords every day. If you don't know what to do in a bull market, welcome to follow us. Bull market spot passwords and layout strategies can be shared free of charge. Let's embrace the bull market, increase our winning rate, and say goodbye to being trapped at high levels.
