A widely followed pseudonymous cryptocurrency analyst and bitcoin bull has predicted that the price of the meme-inspired cryptocurrency Dogecoin (DOGE) is “programmed” to plunge to $0.05 and that even Tesla CEO Elon Musk would be unable to save it.
The pseudonymous analyst, going by Tyler Durden on social media, posted a chart showing that the DOGE price chart was forming a head and shoulders pattern, as it’s currently showing a baseline with three peaks, with the one in the middle being the highest one, resembling and head and two shoulders.
According to Investopedia, a head and shoulders pattern formation predicts a bullish-to-bearish trend reversal and is “believed to be one of the most reliable trend reversal patterns,” which would imply that DOGE’s upward trend is coming to an end, and that the cryptocurrency is about to drop exponentially.
At press time Dogecoin is trading at $0.187,m down from an all-time high above $0.70 back in May of this year. Interest in the cryptocurrency peaked after Tesla CEO Elon Musk hosted “Saturday Night Live” and said during the show the cryptocurrency was “a hustle.”
In his tweet, Durden referenced Musk as the CEO of Tesla has often tweeted about DOGE and helped spur interest in the cryptocurrency. At one point, Musk even clarified Dogecoin “has no formal organization & no one reports to me, so my ability to take action is limited,” while responding to a user who said he was actively marketing the cryptocurrency and treating it as “one of his own companies.”.
The entrepreneur has been actively promoting it over the last few months, to the point he has been called the CEO of Dogecoin and the ‘Dogefather’.
Musk has engaged with Dogecoin’s developers to try and keep the cryptocurrency’s development progressing and even asked his over 56 million followers on the microblogging platform to submit ideas to help develop DOGE.
Shortly before he revealed Tesla would stop accepting bitcoin payments over environmental concerns, he also tweeted a poll asking his followers whether the electric car maker should accept DOGE as a payment method.
Dogecoin was originally created back in 2013 as a joke. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations. It made headlines in 2014 after raising more than $25,000 worth of DOGE to let the Jamaican bobsleigh team attend the Winter Olympics in Sochi.
Over the past year, the cryptocurrency’s popularity exploded after several celebrities started tweeting about it. Musk, Kiss singer Gene Simmons, billionaire Mark Cuban, Snoop Dogg, and others have over time tweeted jokes about DOGE, fuelling its growth.
Year-to-date, the price of DOGE is up over 5,500%, even though the cryptocurrency is down by more than 60% from its all-time high.
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