With Elon Musk finally taking the reins at Twitter last week, the value of Dogecoin rallied by more than 90% — jumping from US$0.05 to $0.14 briefly on October 30 before dropping to 11 cents at the time of writing.
Seven-day price data for DOGE. Source: CoinMarketCap
Despite the latest surge, in defiance of the prevailing crypto winter, DOGE remains down 84% on its all-time-high of US$0.73 in May 2021 according to CoinMarketCap. Dogecoin now ranks eighth in the market, overtaking Cardano (ADA) with a market cap of US$15.6 million.
Musk has long been a supporter of the meme coin, and has been attributed as the cause of several major DOGE price pumps, including when he first announced his intent to buy Twitter.
The Twitter acquisition process was fraught, with Musk seeking to renege his offer and then backflipping in early October —ostensibly to avoid legal action brought about by Twitter. At the time, Musk’s confirmation that he’d close the deal led to a small bump in Dogecoin’s value of around 9%.
Officially becoming Twitter’s boss has come with some surprising learning opportunities for Musk:
Just received this email from Twitter. This is an actual, real email that was autogenerated 🤣🤣 pic.twitter.com/7DQp4sNINX
CEO of electric car company Tesla and rocket manufacturer SpaceX, Musk has touted his admiration for Dogecoin in various tweets and interview mentions since 2019. He also began accepting Dogecoin as a payment in exchange for merchandise of his companies.
Musk had also hinted that he was considering making DOGE a payment option for Twitter users to authenticate their accounts. Since the acquisition was finalised, Cardano’s founder and CEO Charles Hoskinson went as far as predicting DOGE could be integrated with the social media platform:
Now that Twitter is in the hands of @elonmusk I can see a real possibility that doge will somehow merge with the platform.
Musk’s support for DOGE has not been without controversy. In June this year a US$258 billion class-action lawsuit was filed against Musk and his companies, alleging Musk had been essentially running a Ponzi scheme — intentionally manipulating the price of the coin for profit.
Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
Crypto Market Outlook
I’m BACK! I apologise to readers for my absence of late. Having a newborn is challenging enough and unfortunately we’ve had to make many hospital visits over the past month. But all is well!
Let’s get into it!
On April 11, I shared with you my thoughts around what I was seeing from BTC, and that was a huge bear flag forming (see image below) indicating further downside in the market. We have since dropped a further 40%. I do believe we are still likely to see an additional 20% drop from the current price level before we see a significant reversal. My first target to start scaling in on SPOT is US$20,000.
Image from Apr 11 article
Current BTC Chart
The TOTAL market cap is now down 65% from ATH, and I think in the coming days/weeks we will drop below the US$1 trillion valuation. On May 17 I shared the below chart showing another potential loss of over US$300 billion to US$500 billion, and you will see that the TOTAL has now shown a weekly close below its 200 EMA, which tells me the likelihood of this happening is getting higher.
TOTAL chart shared on May 17
Current TOTAL chart
Recent Performance
There have been two trades in particular that I’ve shared here numerous times that had great shorting potential: DOGE and ADA. These charts started back in December, if you’d like to take a look.
DOGE/USDT
DOGE is almost at my key Take Profit (TP) level of US$0.04, which will yield me a total of 730% profit from this entry using a 10x position.
DOGE chart shared May 2
Current Doge chart
ADA/USDT
An ADA target of US$0.18 is still on the table and at this point I will likely close my Short at around 800% profit using 10x leverage, and look to not only enter LONG positions but also scale into ADA on the SPOT market.
ADA chart shared May 2
Current ADA chart
This Week’s Trades
I will absolutely NOT be entering new trades this week. We are mid-dump in a bearish market and it’s safer to stay out and just wait.
What I’ll be looking for are key levels on the daily and weekly charts for both BTC and ETH where I will enter SPOT positions and open longs. This is where patience is key.
If BTC and ETH both close a weekly candle at or below current levels, things will certainly go from bad to worse. Targets are outlined on the charts below.
Be patient, invest wisely and don’t stress. Crypto is still in its infancy of what it can accomplish!
BTC/USDT
ETH/USDT
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Crypto Market Outlook
Since last week, the crypto market has been hectic! We lost another US$200 billion from the TOTAL crypto cap since last week’s analysis article, which is approximately 50% of what we forecast.
There may be some temporary support and relief but I feel the bloodbath is not over.
TOTAL market cap
Bitcoin has hit target number 1 on the downside with absolute perfection! Take a bow! Now remember folks, I trade in both LONG and SHORT conditions so I’m allowed to be a little excited by this. Not only do we make profits on the way down but we also get to buy cheaper BTC! The bear flag is well and truly under way now. As I said above, we could see a bounce soon with a relief rally but I just don’t feel like the bloodbath is over yet. Nevertheless, I’m scaling in and buying more BTC just in case.
If this US$30,000 region of support breaks to the downside, things will get very scary for those who are yet to weather a crypto winter, with some price objectives seeking out US$23,000, US$20,000 and sub-US$20,000 targets.
If you’re in the red now, stay strong. I have 100% faith that BTC will again make ATH and exceed expectations. This may take some time but I’m confident it will happen if it follows my chart analysis.
Well, aside from nailing BTC short I’ll share two trades that played well last week. This is the reason we say, “Don’t buy big green candles in a bear market”. We wait for those relief rallies, then short, based on technical analysis alone.
ZIL/USDT
Managed to snag a cheeky short on ZIL in its recent pump. We identified that ZIL was moving against other ALTS, and BTC having seen its little rally, entering short on both daily resistance and 200/100EMAs. This position is still open and on a leverage of 10x, so sitting currently at 213% ROI with a target of 400%+.
ZIL/USDT
DOGE/USDT
One trade I keep going back to is DOGE. I’ve seen the short potential on this for weeks, if not months, and it’s STILL looking good. Last week I was lucky enough to short the “Elon Effect”, positioning me better than I anticipated (thanks Elon!). A 10x trade is currently sitting at 340% ROI.
I still expect further downside to US$0.04 if we don’t bounce here.
DOGE/USDT
This Week’s Trades
No new trades for me this week as my wife and I have just welcomed a beautiful baby girl into the world, but I will quickly share my thoughts on BTC for you.
IF BTC can rally here we could see some green over the next couple weeks, but that still wouldn’t mean the bear moon is over. It could just be yet another relief rally!
Breaking US$30,000 support before any rally occurs, there’s really not much stopping her going to US$20,000.
Possible BTC next moves
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Crypto Market Outlook
The TOTAL market cap lost US$100 billion over the weekend and is currently having a small retrace of that loss. I suspect this will be pretty short-lived, which would bring us to a very important last line of defence. If the TOTAL drops below US$1.58 trillion, there’s huge potential for a US$400 billion loss. This will undoubtedly hurt a lot of people, so please investigate stop losses and make sure you’re prepared for the worst-case scenario!
TOTAL market cap
The BTC monthly closed just below that monthly support and has a window of opportunity to keep us in a ranging situation. Failing that, we get another bearish month and it’s anyone’s guess how low we could drop from here. If you zoom right out and take a good look at the monthly chart, you will see there’s really no structure between US$34,000 and US$14,000.
BTC monthly chart
I’m putting forward some very bearish cases here and that does not mean it’s game over. There’s still opportunity for BTC to bounce, but it must happen above US$30,000! If that level breaks, then it will be a long winter in my opinion.
BTC/USDT 1D chart
BTC is currently sitting on a weekly 100 EMA and some daily support. My bias is still that we see a bear flag that I wrote about last week play out over the next month or two. If so, ALTS will bleed hard.
Last Week’s Performance
ADA/USDT
ADA, like many others, is also at its last line of defence. I entered short last week and am now currently sitting at around 120% ROI. I’d like to see this trade reach approximately 800% in 10x.
ADA/USDT
DOGE/USDT
This entry was partially TA and partially luck! Last week I wrote about my thoughts on DOGE dropping 70%, then Elon decided to buy Twitter (as you do) and DOGE pumped. The luck part was that I didn’t enter right away and instead got in a short on the pump. I’m currently sitting at 170% ROI.
DOGE/USDT
This Week’s Trades
TORN/USDT
I’ve been watching TORN since last week and have just entered a short trade today. Candlestick analysis is showing a lot of indecision at a crucial level of daily resistance. R:R looks good enough for me to enter.
TORN/USDT
TRX/USDT
A 2017 fan favourite, TRX, looks like it could be setting up for a short trade. It’s currently sitting at both daily 200 EMA and daily resistance. If we see BTC drop, this could present a prime entry for short trades.
TRX/USDT
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It’s a place to share your trading ideas and follow other experienced traders’ feeds to help keep your finger on the pulse of such a volatile market!
Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
Crypto Market Outlook
Let’s dive straight into Bitcoin!
In my last article I outlined my thoughts around BTC painting a very large Bear Flag, and nothing has changed since then. BTC has in fact continued to drop as expected and is currently sitting on a very important price level at US$39,000. Breaking this support will confirm a lower high and bearish market structure. We have seen a fake out above US$40,000 and above the 200 EMA that was short-lived.
Image of BTC chart from my last article
BTC/USDT current chart
ALTs are bleeding out, BTC dominance is rising with BTC price action dropping, the SPX and gold are also down, and if momentum continues I see the crypto market losing up to US$500 billion.
TOTAL market cap
I hope for everyone’s sake that I’m wrong but we need to stay realistic. I’m not out to upset folks with any FUD or purposely sharing a pessimistic view, but I do think people should be prepared. Plan for the worst, aim for the best. The last thing I want to see is entire communities losing 90%+ of their investments like we saw in 2018.
This Week’s Trades
Keeping with my short bias, I’m looking for coins with large volume and market caps to paint some very large drops, two of which I’ve mentioned here on numerous occasions.
DOGE/USDT
I still see DOGE dropping up to 70%, which for me as a leveraged trader on 10x can produce a 700% trade. Two clear rejections on a daily equilibrium supports this. My target for DOGE is US$0.04.
DOGE/USDT
ADA/USDT
Just like DOGE, I can see a 70%+ drop for ADA coming. I’ve been talking about these two coins for some time and how they could be huge short trades when the time is right. I think we could be getting closer! This may upset some holders, but US$0.17 isn’t unrealistic.
ADA/USDT
TORN/USDT
TORN has seen some relatively bullish price action recently and held quite well while the rest of the market has struggled. That said, I think it’s time for a correction here and if the rest of the market does dump, TORN is one of those that will lose a high percentage. It’s possible to see a 60% loss with a US$18.00 target.
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The Crypto Den was created in 2017 to help the rapidly growing crypto community learn and understand the fundamentals of digital currencies and how to trade them.
Since then we have taught thousands of members the basics of technical analysis and trading strategies to further progress and perfect their trading abilities.
In the TradeRoom, you will be included in a supportive environment which encourages personal growth, education and community support.
It’s a place to share your trading ideas and follow other experienced traders’ feeds to help keep your finger on the pulse of such a volatile market!
Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.
Crypto Market Outlook
The TOTAL cryptocurrency marketcap is sitting at US$1.9 trillion, which is where it was two weeks ago. It’s also still trending down in this big bearish channel keeping to a bearish market structure. What this tells me is we have seen the relief rally we alluded to in the last article but still not enough influx of capital to see a breakout into a new structure. It’s bearish until it’s not! A breakout of this channel and above the daily 200 EMA will add US$200 billion of capital back into the market. When this happens, we might get excited.
Total crypto market cap – 1 day chart
Bitcoin to me is still failing to show any real volume. Typical of a bear flag setup, we see a relief rally/dead cat bounce with lowering volume indicative of continuation to the downside. This relief rally has pulled BTC back to the 618 Fibonacci from the last swing, which as most of our trading room members now know is a common retracement level.
Until BTC breaks out above the daily 200 EMA and above US$53,000, the bear case seems much stronger than the bull.
BTC/USDT – 1 day chart
Something else to note at the moment is the stability of the global economy. We have the stock market selling off while gold and oil surge. Big players are hedging, in my opinion, and with the threat of war in Eastern Europe, we’re seeing oil prices rise. As much as I’m somewhat a BTC maxi, I’m not sure it’s matured enough yet to become a hedge in times of uncertainty, like precious metals can be.
Last Week’s Performance
I’m currently still in quite a few short positions, which I’ve shared in our Facebook Group if you’d like to check them out. I’ll share a couple of wins and losses with you from the past week below.
XTZ/USDT
Textbook trade here. Entered short at resistance, took profit at support. Doesn’t get simpler than that! I took 70% of that position off the table and moved the stop loss into a positive position.
XTZ/USDT
UNI/USDT
This isn’t necessarily a losing trade because it never reached our entry, but I thought I’d add this in here to show you can’t win them all. This UNI chart was in last week’s article showing a potential short trade, however we never reached that point and in hindsight we could have entered short from the 200 EMA line. Win some, lose some.
UNI/USDT
ENJ/USDT
Another basic yet effective trade was a short in ENJ. The rising price with lowering volume (just like BTC at the moment), sprinkled with some bearish divergence at resistance, revealed a nice, short entry point!
ENJ/USDT
This Week’s Trades
There are two short trades in particular I’m eager for this week! I’ve been sharing information about them both for quite a while in our trading group.
DOGE/USDT
Again with DOGE!
I STILL see a potential 70% drop on DOGE, currently rising in price on lowering volume as well. I’m currently in a short on DOGE from US$0.16 and, as I’ve been saying, there’s NOTHING stopping a US$0.04 price target!
DOGE chart from my last article
Currrtent DOGE chart zoomed in
ADA/USDT
I’ve been writing about this trade since December 6, 2021, and still waiting! When this daily support level around the US$1.00 mark finally breaks, ADA could likely see an enormous drop up to 80%! In my opinion, this is highly likely if the BTC bearflag (mentioned at the start of this article) plays out.
ADA/USDT
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The crypto market is plummeting once again and Doge bulls are among those suffering the most. Dogecoin has crashed all the way to US$0.16, down from an all-time high of US$0.74 on May 8.
The most recent drop in the crypto market seems to be in response to China’s most recent crackdown on trading and mining. Of course, this is not the first time China has tried to “ban Bitcoin”, but because an enormous amount of Bitcoin mining has been based there, news of regulations and restrictions always has a big impact on the market.
China banning Bitcoin for the 689th time, still supereffective
However, some analysts – such as ‘Big Short’ investor Michael Burry, who famously bet against the housing market before the Global Financial Crisis – argue that the crypto market has been due for a crash for a while.
All hype/speculation is doing is drawing in retail before the mother of all crashes … When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.
Michael Burry
Doge Bulls Among the Hardest Hit in Recent Crash
Dogecoin crashes to 16 US cents, its lowest point since April 23
It seems that the recent NASCAR Dogecar crash foreshadowed the losses that were to come for the Dogecoin Army. Dogecoin, one of the “meme stocks” that Burry refers to, plunged to 16 US cents, the lowest it has traded since April 23. Dogecoin peaked at 74 US cents on May 8, the same day Elon Musk went on Saturday Night Live to spruik the coin.
Since then, Dogecoin has steadily dropped, losing a huge portion of its former market cap.
DOGECOIN HAS LOST $72 BILLION IN MARKET CAP SINCE MUSK'S SNL APPEARANCE $DOGE
During this most recent crash, many traders have been taking their frustration out on Reddit and Twitter, where there are large and active crypto communities.
The Dogecoin community has largely remained positive (or blindly optimistic, depending on how you look at it), arguing that this drop in price is a fantastic opportunity to buy more of their favourite coin.
$DOGE at $0.22!!!! We won’t get it this cheap ever again!! 😭🚀🚀🚀
It seems though that many within the Dogecoin domain believe that one tweet from Elon Musk is going to reverse the trend and pump Doge to the moon. The problem with “to the moon” narratives is that the price target is ambiguous and ever-changing, based on greed. Something the Dogecoin Army might soon have to consider is that perhaps the 20,000% gains Dogecoin has seen in the past six months was the moon shot they had been calling for.
A Dogecoin-sponsored car crashed into a wall at a NASCAR race on June 19, coinciding with a crash in the price of Dogecoin.
During a NASCAR Xfinity Series race in Nashville, US, the Dogecoin-sponsored Chevrolet Camaro collided with a wall, narrowly avoiding taking out another car in the process. The so-called “Dogecar” finished the race in last place.
But despite crashing out of the race, the Dogecar became a hot topic on Twitter, reaching #26 most trending worldwide. As one hopeful Reddit user noted, any publicity is good publicity. Then again, tell that to Iron Finance.
The price of Dogecoin dropped to 26 US cents, its lowest in over a month. Source: TradingView
Around the same time as the car crash, the price of Dogecoin fell to 26 US cents, the lowest since May 19. It is unlikely there is much of a correlation between the two events, given that most of the market is in the red at the moment.
Dogecar Driver Remains Upbeat
The driver of the DogeCar, Stefan Parsons, waxed positive about the whole experience:
Thanks to everyone for the support this weekend. We’ll take the positives away and learn from it. Been a rough couple weeks but we will build on it and be better for next time! Proud of the whole @TeamBJMcLeod crew for the effort we showed this weekend.
Stefan Parsons
Dogecoin Price Has Been Diving for Months
The Dogecoin Army have long called for the cryptocurrency to hit US$1 which, until recently, seemed utterly impossible. But Dogecoin skyrocketed over 20,000% this year alone to an all-time high of 74 US cents on May 8. Since then, however, it has been travelling steadily south. Some analysts and traders consider Elon Musk going on Saturday Night Live to promote Dogecoin to be a blatant “top signal” not only for Dogecoin, but the entire crypto market.
Richest man in the world went on television to do a skit about dog coin
Dogecoin DOGE from Reddit
https://www.reddit.com/r/dogecoin/comments/na0r8c/one_dollar_interact_with_this_post_and_image_so/
A group of Dogecoin (DOGE) fans have launched a bid to influence Google’s search rankings so that a picture of the popular canine cryptocurrency appears whenever someone performs an image search for “one dollar”.
The call was made on a Reddit page with the title: “One Dollar. Interact with this post and image so it will be shown in searches for one dollar.”
This is the image that Dogecoin fans are trying to send up the Google Image Search rankings [Reddit]
The post refers to hopes that Dogecoin will eventually be worth one dollar, in a one-of-a-kind competition between crypto evangelists who would often speculate about Bitcoin replacing the dollar as a global currency.
Worth about 50 cents AUD at the time of writing, Elon Musk’s favourite meme coin is now the fourth largest cryptocurrency and its journey seems definitively moonbound. Yet its astronomical growth does not seem to be enough for some Doge fans.
Is It Working?
The bid to engineer the search results appears to be working. When we searched for “one dollar”, a Dogecoin image was indeed riding high in the rankings.
Doge appearing for “one dollar” search images on Google
Despite the recent fluctuations in price, enthusiasm seems to be running high between Doge supporters, with Reddit user comments like “When Tesla accepts Doge, 1 Doge = $35,000, take it or leave it” or “Waiting for Tesla to accept doge since the announcement of Elon’s appearance on SNL…” where he discussed all things DOGE.
On the Reddit page advertising the stunt, users were also talking about Elon Musk’s recent poll in which he asked if Tesla should start accepting the currency. Results are in and almost 80% in favour of DOGE payments, leaving not much room for interpretation of market sentiment.
Just a few short years ago, Dogecoin (DOGE) was a joke. Arguably, not many thought it would become the fourth-largest cryptocurrency in the world following an astonishing price surge during 2021. Some investors looking for a repeat of the Doge “miracle” have recently turned to a new coin called SHIB, or Shiba Inu Token.
Named after a famous Japanese breed of dog, SHIB has been nicknamed “the Dogecoin killer” and it looks like it is now being taken more seriously than its pooch-themed image might suggest.
A word of caution
When Binance listed SHIB in its Innovation Zone, a place “where users are able to trade new, innovative tokens that are likely to have higher volatility and pose a higher risk than other tokens”, it issued the following warning:
Please note that, as of the time of writing, the top #1, #2 and #5 wallets hold 50.5%, 7.0% and 3.0% of total supply respectively. SHIB is a relatively new token that poses a higher than normal risk, and as such will likely be subject to high price volatility after the Binance listing. Please ensure that you exercise sufficient risk management, have done your own research in regards to SHIB’s fundamentals, and fully understand the project before opting to trade the token.
The man who owns half the world’s Shiba Inu is Vitalik Buterin, whose holdings are now worth billions of dollars after SHIB shot up in price during May from around $0.000002 USD to about $0.000035 USD (an increase of over 15 times). He was given the deposit when SHIB was first minted and it’s understood that he did not know about the gift.
The team behind SHIB writes on their website: “We locked the 50% of the total supply to Uniswap and threw away the keys! The remaining 50% was burned to Vitalik Buterin and we were the first project following this path, so everyone has to buy on the open market, ensuring a fair and complete distribution where devs don’t own team tokens they can dump on the community.”
Is SHIB going to the moon – or doomed to plunge to Earth? No one can tell, but it will be very interesting to see what happens to the latest canine cryptocurrency phenomenon.
