A closely followed crypto strategist is warning that Dogecoin (DOGE) may be on the verge of a deep pullback after failing to take out a key resistance level.
Pseudonymous analyst Rekt Capital tells his 363,900 followers on the social media platform X that Dogecoin respected its multi-month diagonal resistance last week.
According to the trader, DOGE’s price action last week suggests that the memecoin is positioned to fall to its support at around $0.053.
“Complicated weekly close for Dogecoin.
[Weekly] close occurred below the channel top resistance.
This means that the DOGE breakout is postponed.
Previous weekly closes like this -> downside
However, if DOGE can hold the highs and reclaim the channel top as support – there may still be a chance.”
Looking at the trader’s chart, it appears that DOGE needs to convert resistance at $0.07 into support on the weekly chart to confirm the channel breakout.
At time of writing, DOGE is trading for $0.0697.
The crypto strategist is also watching the price action of Ethereum (ETH). Rekt Capital says that Ethereum looks primed for a rally after flipping resistance at $1,600 into support.
“Forming a range between orange support and green resistance.
Since BTC broke out from its own re-accumulation range…
Perhaps ETH should be next.”
At time of writing, ETH is worth $1,813.
The last altcoin on the trader’s radar is the decentralized machine learning network Fetch.ai (FET). Rekt Capital says that FET will likely witness a bullish continuation if it stays above its monthly support at $0.3633.
“+77% rally…
Revisited black and even pressing beyond it.
Black needs to hold as support if FET is to rally higher (yellow circle).”
At time of writing, FET is trading for $0.363.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/JeannieR