As someone who has closely followed the cryptocurrency market over the past few years, I’ve seen firsthand how quickly the tides can turn. The recent development in Dogecoin (DOGE) with its head and shoulders pattern is a stark reminder of this volatility.
In simpler terms, Josh Olszewicz, a well-known cryptocurrency trader, has pointed out that Dogecoin (DOGE), the most popular meme digital currency, appears to be forming a “head and shoulders” chart pattern as of late.
As an observer, I’ve noticed that traders frequently employ the well-known reversal pattern to pinpoint the emergence of a downtrend. This pattern is distinctly marked on Olszewicz’s chart by two key points: “the left shoulder” and “the head.” The left shoulder signifies the initial reversal point, while the head denotes the highest point in the pattern. Subsequently, another significant reversal point, referred to as “the right shoulder,” emerges, merging with the neckline and the left reversal point to complete the pattern.
As an observer, I’d note that if Dogecoin’s price were to drop further and break the current resistance level (referred to as the “neckline”), it could signal the formation of a lower low. This would suggest that the bearish trend, which has been developing with each successive low point, might have reached its completion.
When the price fails to reach a new high, this pattern indicates that the bullish trend is losing steam.
Currently, Dogecoin is being traded for around $0.15 on prominent cryptocurrency exchanges. Over the last 24 hours, its value has decreased by over 4.2%. This decline aligns with the broader trend in the cryptocurrency market.
Bitcoin plunges as rate cut odds dwindle
I recently witnessed Bitcoin, the leading cryptocurrency, momentarily sliding under the threshold of $63,000 earlier today, only to bounce back and reach a new height of $63,622.
Based on the analysis of Fitch, I’ve observed that the possibility of a Federal Reserve rate cut this year seems uncertain following recent economic indicators. The data reveals a decelerating GDP growth rate and increasing inflation in the United States. Notably, Fitch emphasized that the elevated inflation reading is the significant takeaway from the report. If the economic expansion continues to weaken while inflation accelerates further, the anticipation of a Fed interest rate reduction in 2024 appears less attainable.
Intriguingly, futures markets currently indicate that the Federal Reserve will have made no rate reductions by 2024 – a remarkable shift from earlier predictions suggesting they would reduce rates three times in 2021 alone.
In simpler terms, a sudden shift towards a more hawkish monetary policy in 2024 is unlikely to be good news for cryptocurrencies, particularly meme coins. Historically, risk assets, including cryptocurrencies, tend to perform well under loose monetary policies. However, it appears that such a policy may not be in the cards for 2024.
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2024-04-25 19:00