NAIROBI (CoinChapter.com)— Anbessa, a crypto analyst and trader who accurately forecasted Dogecoin’s 8,000% rally in 2020, is accumulating the cryptocurrency again. Anbessa believes the market might be gearing up for another upward move despite Dogecoin (DOGE) recent underperformance in the ongoing meme bull market.
Assessing Dogecoin’s Potential Rally
Anbessa’s current approach to Dogecoin is notably different from that of 2020. The analyst positioned himself for massive gains and an 8,000% rally. Now, he sees the opportunity as offering “solid profit” potential but advises against expecting the same vitality level.
The market has matured, and the dynamics surrounding Dogecoin have changed.
Anbessa shares insights on Dogecoin (DOGE) accumulation and market strategy. Source: X
According to his analysis, Dogecoin (DOGE) could still reach $1, offering a tenfold return from its current level. However, Anbessa clarified that this isn’t the “generational wealth setup” it once was. Instead, he views it as a strategic play within the current market cycle, possibly leading to a rally towards the end of the meme cycle.
Will the Analyst’s DOGE Prediction Come to Pass?
According to CoinMarkertCap, as of Aug. 29, Dogecoin is trading at around $0.10 within a downward channel, indicating a persistently unfavorable trend. At $0.10, the price is close to a critical support level. If this is broken, there may be more losses, sending the DOGE USD pair all the way to $0.057.
DOGE/USD 1-week price chart. Source: TradingView
Social dominance has dropped from over 3% in mid-March to just above 1% by late Aug. 2024, signaling reduced interest and engagement. The MVRV Long/Short Difference has turned negative, meaning short-term holders are operating at a loss. This trend could trigger more sell-offs, worsening market sentiment.
Dogecoin’s MVRV, whale transactions, and social dominance. Source: Santiment
Whale transactions, which track large movements of over $100,000, have also decreased. This decline suggests that major holders are losing confidence and pulling back.
Despite these bearish signals, if Dogecoin (DOGE) holds the $0.10 support, it could target higher levels, such as $0.17 and $0.31, based on Fibonacci retracement. Anbessa’s strategy appears cautious, betting on a possible recovery.
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