He said: “Dogecoin price is currently hovering inside the demand barrier that stretches from $ 0.48 (£0.34) to $ 0.522 (£0.37).
“Interestingly, this zone harbours the 100 four-hour Simple Moving Average (SMA) at $ 0.504 (£0.35). Hence, a quick bounce from this confluence seems likely.
“If this short-term spike pushes Dogecoin price above $ 0.569 (£0.49), it would confirm the start of an uptrend.
“Following the breach of this ceiling, $ 0.739 (£0.59) is the next area of interest, the present all-time high.”
He said it could even “surge to $ 1 (£0.79)” in this circumstance.
But it appears his “unlikely” scenario could now unfold.
He added: “The uptrend outlook detailed above isn’t set in stone and is subject to change if the market conditions worsen.
“Under these circumstances, Dogecoin price will likely slide 10 percent to tag $ 0.28.”
The news from China means financial institutions and payment companies will no longer be allowed to provide services relating to cryptocurrency transactions.
Regulators also warned investors about the volatility of the cryptocurrency market.
They said: “Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
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.
This post originally appeared on Daily Express :: Finance Feed