{"id":122120,"date":"2021-04-21T22:06:59","date_gmt":"2021-04-21T22:06:59","guid":{"rendered":"https:\/\/precoinnews.com\/?p=122120"},"modified":"2021-04-21T22:06:59","modified_gmt":"2021-04-21T22:06:59","slug":"pro-trader-warns-dogecoin-could-drop-50-in-a-retracement-how-it-could-happen","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/pro-trader-warns-dogecoin-could-drop-50-in-a-retracement-how-it-could-happen\/","title":{"rendered":"Pro Trader Warns Dogecoin Could Drop 50% In A Retracement: How It Could Happen"},"content":{"rendered":"
Dogecoin (DOGE) rallying to all-time highs recently wasn\u2019t just the beginning and investors in the meme cryptocurrency should brace for losses, veteran trader John Bollinger has warned.<\/p>\n
In an April 21 tweet, the Bollinger Bands indicator creator posited that he had spotted an \u201cimportant top\u201d in DOGE.<\/p>\n
Some Dogecoin fans were set to push the coin\u2019s value to $1 on April 20 \u2014\u00a0 a day they declared as ‘Dogeday’. However, the day turned out to be a huge nothingburger as it ended with a 21% drop. DOGE is trading at an unremarkable price of $0.31 at press time, and Bollinger believes it might be due for further losses.<\/p>\n
<\/p>\n
Bollinger says DOGE\u2019s impressive April rally could retrace by a staggering 50%. He emphasized that the Bollinger %b indicator is demonstrating a lower high. This has formed a bearish divergence that could fuel a severe correction.<\/p>\n
Adding to the grim outlook is the percentage difference between the lower band and the upper band \u2014 or the Bandwidth \u2014 which the technical analyst notes is also down.<\/p>\n
Although the technicals are quite bearish for Dogecoin, all hope is not lost. Bollinger acknowledged that the coin\u2019s patron saint of price-boosting, Elon Musk, could very well \u201cmake a fool out of him\u201d.<\/p>\n
The SpaceX\/Tesla CEO enjoys posting tweets about the eight-year-old cryptocurrency and causing wild swings in the market. Just last week, Musk referenced the meme coin in a tweet as it shot up from $0.15 to $0.40 in the span of days.<\/p>\n
Musk who has 51.7 million followers on Twitter, might therefore tweet about DOGE in the coming days and negate the short-term bearish setup. And maybe this time it could finally enter the coveted $1-decimal club.<\/p>\n