The value of Dogecoin has risen more than 22 percent in the last 24 hours, and the “meme cryptocurrency” is currently valued at $0.40 following a huge dip last month. It comes after the popular crypto exchange Coinbase added the asset to its professional trading platform. The news was celebrated by self-proclaimed “Dogefather” Elon Musk, who shared a photo of the coin on Twitter, adding “it’s inevitable,” in an apparent reference to its incoming meteoric rise.
But popular YouTube crypto analyst ‘TheFinanceValueGuy’ is not so sure.
Sharing a chart on his channel, he stated: “If Dogecoin is to move upwards in an ascending channel, this would need to be supported by a move from Bitcoin.
“This chart can show us where Bitcoin could potentially move over the next three days and looking at that data with Dogecoin, we’ll see where it goes too.
“What we have is a wedge, we have the support and the resistance and once we get near the end of this wedge the price tends to break up to the upside or the downside.
“If it breaks to the downside, it’s usually a major move down, it doesn’t just sit here. Likewise, if it moves to the upside it’s a major move up.”
The price of Bitcoin continues to trade within a very narrow band, having enjoyed a remarkable period of stability since the weekend.
It is currently taking at $37,672 (£26,590), down from the $60,000 (£42,350) highs experienced in May.
The analyst added: “Hopefully the price does go up, but, at the end of the day, the market will do what the market does.
“There is past data that is definitely hopeful, but it is objective. There are so many different things that could happen, but we know that a major move is coming.
“If things are still bullish then the price should bounce up, but we are in a downtrend from the data.
“It is higher than likely that we will move towards the $0.19 level. It could be wrong, but that’s what the data is saying.”
Britain’s Financial Conduct Authority (FCA) has previously warned investors of the risks that come with investing in cryptocurrency.
They said: “If consumers invest, they should be prepared to lose all their money.
“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.
“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”
Express.co.uk does not give financial advice. The journalists who worked on this article do not own cryptocurrency.