Some Negative Thoughts About Dogecoin by A Couple Of Analysts. Do You Agree?
Doges forming a bullish flag pattern on the daily and hourly charts, and it seems like Doge can run up to test the resistance level of 30.5 cents. Tomorrow in the daily chart, we see three consecutive candles.
And if you draw the same trend lines, you will see that the latest green candle on the daily is almost done, breaking above the resistance level of 31 cents. And if Doge breaks above that, too, we could see it quickly jump to the 40 cents level from there.
Keep ourselves aware of what’s coming for Dogecoin before we form any conclusions
Moving on, a couple of analysts who run really successful companies had some really negative thoughts about Dogecoin. The first one was Michael Kamerman, the CEO of Skilling. Initially, he talked about the reasons why Dogecoin has taken off this year by saying that Dogecoin has set itself apart from other crypto currencies only because it is inflationary. Meaning there are no limits to the numbers of coins in circulation.
In turn, is intended to maintain the incentive to mine by removing the cap on coins. However, the main driver behind Doge wins popularity is its online communities, coupled with support from high profile business magnates like Elon Musk.
He was implying that Dogecoin doesn’t have intrinsic value because of its scalability and security issues. But I think he probably isn’t aware of the Dogecoin Foundation, which was recently revived to address the exact same reasons.
The second analyst was the founder of Money under 30. He said that everyone loves to speculate on Dogecoin, but it’s important to remember that Dogecoin is a parody of real cryptocurrency. Unlike Bitcoin, Dogecoin has no hard cap. Unlimited Dogecoin can be created.
If he’s trying to say that this will work against Dogecoin in the future, then he probably doesn’t know that Dogecoin deflationary mode will soon be activated because of DogeLabs new wallets. And then there’s the Ethereum and Doge Bridge, which will also probably help Doge burn millions of coins every day, thus keeping its value in check. The point is that we need to keep ourselves aware of what’s coming for Dogecoin before we form any conclusions about it.
It’s important to not buy into predictions with no evidence or success rate
Let’s look at a couple of other things that we need to address here. Recently in a tweet, Mr. Whale said that Bloomberg says Bitcoin is going to double in price and hit 100K by the end of this year. The corrupt media desperately wants to lure in more suckers before pulling the rug. Don’t fall for their traps.
Bitcoin was supposed to end September at forty seven K. And that’s exactly what happened. And also, according to them, Bitcoin is going to reach 135 K by December, and that’s their worst case scenario. Now, we’re obviously addressing this because Doge is closely following its trajectory right now with the correlation of over 75.
So if Bitcoin reaches 135 K, Dogecoin is also going to reach around a dollar by December. And this is why it’s important to not buy into predictions with no evidence or success rate.