Prediction about memecoin made by legendary trader is not what you think
latest prediction made by Peter Brandt The trader himself has received an explanation regarding the long bearish breakout Dogecoin, who warned his clients that the end of a downtrend does not necessarily mean the beginning of an uptrend.
Brandt highlighted in one of his recent tweets the breakout of the bear channel, which made some people believe in the potential acceleration of the rally on Dogecoin that is showing a 100% return in the last four days, making it the most volatile price spike for the memecoin in the last few months.
However, Brandt brushed off some upbeat views from DOGE investors who believed in a continuation of the Musk-fueled rally, saying the breakout might not lead to an uptrend.
The legendary trader most likely refers to consolidation after a volatile breakout. Whenever an asset shows explosive performance similar to DOGE’s, they might not enter a bullmarket and proceed at the same pace but rather enter a stable consolidation or even reverse back to pre-pump price levels.
Brandt also noted that to think that a downtrend breakout is a sign of an early uptrend is a common mistake among novice and “wannabe” traders. “Often,” the above assumption is wrong.
Historically, a sudden breakthrough on an asset that did not show any signs of a reversal led to disappointment for investors who opened their positions during or after a breakout. Accumulation and a stable volume increase are usually the main signs of a healthy trend change as they become a foundation for a long-term rally.
At press time, Dogecoin is trading at $0.116 and is down 1.1% from its value over the past 24 hours.
