- Billy Markus, the co-founder of Dogecoin, believes that at least 70% of crypto investors have no idea about the fundamentals and how the market works.
- Nearly a year ago, Dogecoin hit its all-time high of $0.73; since then, the token has fallen by 88.4%.
- Analysts note Dogecoin’s recent pullback and identify a technical pattern that could push DOGE 15% higher if it materializes.
The co-founder of Dogecoin advises crypto investors to do real research and stay on top of their crypto investments. As the coin meme tumbles under pressure, analysts are finding a bullish pattern that could lead to a rally in Dogecoin.
Dogecoin is preparing for a comeback
While Dogecoin derives most of its trading volume and activity from the hype surrounding its meme coin, the founder of the Shiba-Inu-themed cryptocurrency has criticized the lack of fundamental awareness among crypto investors.
Billy Markus, co-creator of Dogecoin, doesn’t think much of investors who have no idea how the market works and shared his thoughts in a recent tweet.
I don’t know how many crypto investors don’t even understand the fundamentals of crypto or how the markets work, but I think if I read what people are saying, at least 70% have absolutely no idea
—Shibetoshi Nakamoto (@BillyM2k) May 16, 2022
Markus advised traders looking to invest in two steps: research the basics of cryptocurrencies and markets in general, then plan.
Supporters believe Markus’ tweet refers to Terra’s LUNA and UST crash, where the algorithmic stablecoin TerraUSD lost nearly 97% of its value in a week. In less than seven days, Terra’s colossal crash was likened to a cryptocurrency “bank run” and wiped out nearly $39.2 billion of Terra’s LUNA and UST market value.
In the bloodbath in the cryptocurrency market, fueled by the Federal Reserve’s tightening of monetary policy and the detachment of the stablecoin after UST, Dogecoin has wiped out gains and suffered 37% losses in the past two months.
Bullish Dogecoin Whales on Meme Coin
The number of Dogecoin tokens held in large dormant wallet addresses has increased significantly since the beginning of 2022.
The cumulative sum of dormant DOGE addresses
An increase in DOGE kept dormant or inactive implies an increase in Dogecoin accumulation and is a bullish indicator. The dormant supply of meme coins is effectively removed from the circulating supply, reducing it and driving up the price.
Investors in major wallets have turned bullish for DOGE, hoarding the meme coin and keeping it dormant since the start of 2022; however, several market participants withdrew. The total number of active addresses reached an all-time high of 748,890 in March 2022, but there was a huge drop as market participants exited DOGE.
Dogecoin addresses active in the last six months
Dogecoin could break out with a 15% rally if this indicator is true
Despite Dogecoin’s recent pullback, analysts remain optimistic about the coin itself. Dogecoin price failed to recover from the market correction and has fallen nearly 5% in the past 24 hours.
However, analysts have reviewed the Dogecoin price chart and identified a technical pattern that implies a trend reversal and DOGE breakout if it occurs. Analysts have identified a symmetrical triangle pattern on the intraday Dogecoin chart. This pattern is considered bullish for the currency itself. If that happens, DOGE could see a 15% price increase.
Analysts noted that DOGE is currently testing the lower bound of the formation, which could lead to a bearish result. If the price hits the lower bound and the bullish triangle pattern on Dogecoin price fails, it could cause DOGE price to break down instead.