Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure
- Billy Markus, the co-founder of Dogecoin, believes at least 70% of crypto investors are clueless about fundamental basics and how the market works.
- Nearly a year ago, Dogecoin hit its all-time high of $0.73; since then the token has plummeted 88.4%.
- Analysts note Dogecoin’s recent pullback and identify a technical pattern that could push DOGE 15% higher if it plays out.
Dogecoin’s co-founder advises crypto investors to perform actual research and stay informed about their crypto investments. While the meme coin crumbles under pressure, analysts find a bullish pattern that could drive a rally in Dogecoin.
Dogecoin prepares to make a comeback
While Dogecoin derives most of its trade volume and activity from the hype around its meme coin, the Shiba-Inu-themed cryptocurrency’s founder criticized the lack of fundamental awareness among crypto investors.
Billy Markus, co-creator of Dogecoin, doesn’t think highly of investors who are clueless about how the market works and shared his views in a recent tweet.
i am not sure how many investors in crypto don’t even understand the fundamental basics of either crypto or how markets work, but i would guess by reading what people say, at least 70% have absolutely no clue
— Shibetoshi Nakamoto (@BillyM2k) May 16, 2022
Markus recommended a two-step action plan for traders keen on investing – research the fundamentals of cryptocurrencies and the markets in general, and then plan.
Proponents believe Markus’ tweet refers to Terra’s LUNA and UST crash, where algorithmic stablecoin TerraUSD lost nearly 97% of its worth within a week. In less than seven days, Terra’s colossal crash has been likened to a “bank run” in cryptocurrency and wiped out nearly $39.2 billion in the market value of Terra’s LUNA and UST.
In the crypto market bloodbath triggered by the Federal Reserve tightening its monetary policy and the de-peg of stablecoins, after UST, Dogecoin wiped out its profits and posted 37% losses over the past two weeks.
Dogecoin whales bullish on the meme coin
The number of Dogecoin tokens held in dormant large wallet addresses has increased significantly since the beginning of 2022.
The cumulative sum in dormant DOGE addresses
A rise in DOGE that is held dormant or inactive implies an increase in the accumulation of Dogecoin and is a bullish indicator. The supply of meme coins held dormant is effectively pulled out of the circulating supply, reducing it and driving up the price.
Large wallet investors turned bullish on DOGE, accumulating the meme coin and holding it dormant since the beginning of 2022; however, several market participants exited. The total number of active addresses hit an all-time high of 748,890 in March 2022, however, a massive decline followed as market participants exited DOGE.
Active Dogecoin addresses over the last six months
Dogecoin could breakout with 15% rally if this indicator plays out
Despite the recent pullback in Dogecoin, analysts remain bullish on the meme coin. Dogecoin price has failed to recover from the market correction and nosedived nearly 5% within the last 24 hours.
However, analysts have evaluated the Dogecoin price chart and identified a technical pattern that implies a trend reversal and a breakout in DOGE if it plays out. Analysts have identified a symmetrical triangle pattern on the intraday Dogecoin chart. This pattern is considered bullish for the meme coin. If it plays out, DOGE could witness a 15% price rally.
DOGEUSDT chart
Analysts noted that DOGE is currently testing the formation's lower border, which could result in a bearish outcome. If price penetrates the lower border and the bullish triangle pattern on Dogecoin price fails, it could lead to a breakdown for DOGE price instead.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
