- Billy Markus, the co-founder of Dogecoin, believes at least 70% of crypto investors are clueless about fundamental basics and how the market works.
- Nearly a year ago, Dogecoin hit its all-time high of $0.73; since then the token has plummeted 88.4%.
- Analysts note Dogecoin’s recent pullback and identify a technical pattern that could push DOGE 15% higher if it plays out.
Dogecoin’s co-founder advises crypto investors to perform actual research and stay informed about their crypto investments. While the meme coin crumbles under pressure, analysts find a bullish pattern that could drive a rally in Dogecoin.
Dogecoin prepares to make a comeback
While Dogecoin derives most of its trade volume and activity from the hype around its meme coin, the Shiba-Inu-themed cryptocurrency’s founder criticized the lack of fundamental awareness among crypto investors.
Billy Markus, co-creator of Dogecoin, doesn’t think highly of investors who are clueless about how the market works and shared his views in a recent tweet.
i am not sure how many investors in crypto don’t even understand the fundamental basics of either crypto or how markets work, but i would guess by reading what people say, at least 70% have absolutely no clue
— Shibetoshi Nakamoto (@BillyM2k) May 16, 2022
Markus recommended a two-step action plan for traders keen on investing – research the fundamentals of cryptocurrencies and the markets in general, and then plan.
Proponents believe Markus’ tweet refers to Terra’s LUNA and UST crash, where algorithmic stablecoin TerraUSD lost nearly 97% of its worth within a week. In less than seven days, Terra’s colossal crash has been likened to a “bank run” in cryptocurrency and wiped out nearly $39.2 billion in the market value of Terra’s LUNA and UST.
In the crypto market bloodbath triggered by the Federal Reserve tightening its monetary policy and the de-peg of stablecoins, after UST, Dogecoin wiped out its profits and posted 37% losses over the past two weeks.
Dogecoin whales bullish on the meme coin
The number of Dogecoin tokens held in dormant large wallet addresses has increased significantly since the beginning of 2022.
The cumulative sum in dormant DOGE addresses
A rise in DOGE that is held dormant or inactive implies an increase in the accumulation of Dogecoin and is a bullish indicator. The supply of meme coins held dormant is effectively pulled out of the circulating supply, reducing it and driving up the price.
Large wallet investors turned bullish on DOGE, accumulating the meme coin and holding it dormant since the beginning of 2022; however, several market participants exited. The total number of active addresses hit an all-time high of 748,890 in March 2022, however, a massive decline followed as market participants exited DOGE.
Active Dogecoin addresses over the last six months
Dogecoin could breakout with 15% rally if this indicator plays out
Despite the recent pullback in Dogecoin, analysts remain bullish on the meme coin. Dogecoin price has failed to recover from the market correction and nosedived nearly 5% within the last 24 hours.
However, analysts have evaluated the Dogecoin price chart and identified a technical pattern that implies a trend reversal and a breakout in DOGE if it plays out. Analysts have identified a symmetrical triangle pattern on the intraday Dogecoin chart. This pattern is considered bullish for the meme coin. If it plays out, DOGE could witness a 15% price rally.
DOGEUSDT chart
Analysts noted that DOGE is currently testing the formation's lower border, which could result in a bearish outcome. If price penetrates the lower border and the bullish triangle pattern on Dogecoin price fails, it could lead to a breakdown for DOGE price instead.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.