In the ever-evolving landscape of cryptocurrency, understanding market psychology is crucial for informed investing. Recently, crypto analyst Selim provided an in-depth analysis of the Dogecoin price action, warning investors of the potential challenges ahead as the foremost meme coin approaches what he calls the ‘anger phase’.
Dogecoin Price About To Enter The Anger Phase
According to a TradingView post, Selim indicated that recent trends in Dogecoin’s price suggest it is about to enter the anger phase, a critical point in market psychology. During this phase, many retail traders may succumb to frustration, blaming market conditions or external forces for price inactivity, while savvy investors begin to position themselves for accumulation. Selim cautions investors to be wary of getting caught in a potential trap before a rally commences.
Selim elaborates on market psychology cycles by referencing the ‘Stock Market Psychology Cycle.’ He noted that the Dogecoin price experienced the Euphoria phase when it peaked at $0.43, followed by the Complacency to Denial phase during its pullback to the $0.28 to $0.20 range. The Panic and Capitulation phases were marked by a drop to $0.14.
How It Could Play Out For The Meme Coin
With current Dogecoin prices lingering between $0.12 and $0.13, Selim believes this aligns with the anger sentiment, where traders express dissatisfaction and ultimately capitulate. Looking ahead, he predicts a potential short-term relief rally to approximately $0.19, inviting late buyers and likely setting the stage for a bull trap.
Following this rebound, he anticipates a decline to $0.11, representing a final shakeout, triggering stop losses, and sparking discussions about the viability of Dogecoin. However, Selim believes that a strong reversal could follow, propelling the meme coin to a target of $0.23, supported by factors such as the conclusion of tax season and a shift in the meme coin narrative.
In response to the current downturn, Selim has outlined his strategy: he intends to monitor price behavior around the $0.19 mark, with plans to accumulate near $0.11 if volume indicators suggest a supportive environment. His aspirations include a move towards $0.23 as interest rebounds.
Potential for Further Decline
However, not all analysts share the same optimistic outlook. In a recent post on X, crypto analyst Ali Martinez warned that Dogecoin prices may plunge as low as $0.060. He cites the current breakout from an ascending parallel channel as a troubling signal that could force the price downward.
Further complicating the landscape, DOGE whales have reportedly capitulated, selling off significant portions of their holdings—over 1.32 billion DOGE in just 48 hours, indicating a loss of confidence.
As of now, Dogecoin is trading around $0.14, marking a decline of over 4% in the past 24 hours, according to CoinMarketCap.
