Crypto analysts have been quite bullish on the future price trajectory of Dogecoin. However, it seems this sentiment is not shared by everyone in the industry. In an interview, Pav Hundal, lead analyst for Australian exchange Swyftx, told CoinTelegraph that hoping for a $1 price target for Dogecoin could be risky.
Why Dogecoin Might Not Reach $1
In the interview, Hundal suggests that the Dogecoin price reaching $1 could be a perilous journey due to its holder base. The crypto analyst attributed this to the fact that there are a lot of DOGE holders who had purchased the meme coin in 2021 due to the hype at the time. But at current prices, these holders are currently nursing losses.
The logic is that these holders will be waiting for any opportunity to break even, and once the price starts moving up, there could be a lot of sell pressure as these investors with underwater dogs rush to sell off their holdings and secure profit.
In addition to this, the crypto analyst also believes that the meme coin might not do well as it will not see “the deep books of this cycle.” This refers to the significant drop in its open interest as liquidity has moved toward other meme coins.
However, Hundal’s bearish forecast is not shared by other analysts. Rekt Capital, in particular, has kept a rather optimistic outlook for the meme coin. The analyst believes that just because other meme coins are launching and liquidity is being distributed doesn’t mean that Dogecoin will not do well.
As the analyst mentioned, the meme coin continues to be “one of the most cyclical altcoins in the space.” What this means is that DOGE tends to repeat its performances each cycle, leading him to believe that it will go higher during this bull market.
DOGE struggles to reclaim $0.16 support | Source: DOGEUSDT on Tradingview.com
Odds Of A DOGE Breakout Are High
In addition to Rekt Capital, crypto analyst CobraVanguard, also believes that Dogecoin is set to do well. In their analysis, they show that Dogecoin has formed an ascending structure on its chart, something that has been historically bullish for the cryptocurrency.
Additionally, there has been the formation of an ascending triangle on the chart as well, another bullish signal. Given these developments, the analyst believes that the odds of the meme coin staging another bull rally from here are high.
“DOGE is in an ascending triangle which means the price is about to do a good bullish movement,” the analyst said. “The price can increase as much as the measured price movement ( AB=CD ). The break out needed for increasing further has not happened but it should happen pretty soon.”
Source: Tradingview.com
Featured image from CryptoRyancy, chart from Tradingview.com