Warning Issued for DOGE and TOMO: Analyst Predicts a Downturn for the Largest Memecoins - COINTURK NEWS
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Warning Issued for DOGE and TOMO: Analyst Predicts a Downturn for the Largest Memecoins

3:51 pm (61 days ago)
August 2, 2023

Dogecoin (DOGE), the largest memecoin in the crypto market, which drew attention with its strong performance last month, and TomoChain (TOMO) have been warned about a potential downturn. Anonymous crypto analyst Rekt Capital provided a warning for DOGE and TOMO, as well as interpreted the short-to-medium-term outlook for the altcoin king Ethereum (ETH) and the crypto king Bitcoin (BTC).

DOGE and TOMO Investors Should Be Cautious

Crypto analyst Rekt Capital warned investors that DOGE has entered a downtrend for now after breaking the resistance of the descending wedge formation. The analyst expects the biggest memecoin to pull back to the diagonal support of the formation, which is at the $0.055 level, in the worst-case scenario:

DOGE made its new weekly close below the formation resistance. As a result, DOGE could potentially undergo a rejection and consolidation movement within the formation. In the worst-case scenario, DOGE could pull back to the bottom of the market structure.

At the time of writing this article, Dogecoin, which is trading at $0.078, will have lost up to 30% if it reaches the downward target of the analyst.

Rekt Capital also issued a warning for TomoChain (TOMO), which is considered a competitor to Ethereum. The analyst stated that the low-volume altcoin will correct lower after closing July below the high-timeframe resistance at $1.60:

It rallied over 54% since the black support, then rallied towards the red resistance and broke through it. The monthly close is now a key position. A monthly close above red signifies an upward move, while a monthly close below red implies a downward move within the black-red range.

Analyst’s Outlook on Ethereum and Bitcoin

Following Dogecoin and TomoChain, Rekt Capital switched his focus to the largest smart contract protocol, Ethereum, stating that for the altcoin king to have a chance of surpassing $2,000, it needs to break above the $1,861 support level. He said, “For ETH price to have a chance to revisit around $2,275 within the next few weeks, it needs to stay above $1,863.”

Lastly, the analyst commented on Bitcoin, expecting the largest cryptocurrency to rally after successfully defending the $29,250 support level.

Looking at the Bitcoin chart shared by the analyst, it can be seen that if the price stays above support, it is expected to move towards $33,000 and $35,000.

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