It's Not Just a Correction, It's Capital Flight! Will Dogecoin Struggle to Rebound?
Dogecoin continues its downward trend, having fallen by 11.8% over the past week, currently priced at $0.1207. This decline coincides with the overall weakness in the cryptocurrency market, reflecting that investors are pulling away from risk assets under the dual pressure of geopolitical tensions and uncertainties in Federal Reserve policy. 📉 Market Performance: Price and volume both decline, sentiment worsens In the past 24 hours, Dogecoin has fallen by 2.41%, with trading volume shrinking significantly by 44%, down to $426 million. This phenomenon of 'decline in both price and volume' usually indicates a decrease in market participation, with weak buying interest, not only among retail investors but also institutional funds withdrawing from speculative assets like altcoins.
COAI, AIA, MYX, and RIVER are four secondary markets with highly speculative coins that may not align with the majority's judgment of value investing. However, there aren't many coins in the crypto world that are truly worth value investing, so here are a few thoughts: 👇
1. High concentration of chips = High control by the market maker
Do you think chip concentration is a bad thing? That may be true for those who want to hold long-term for value investing.
But for those who engage in speculation, chip concentration is simply a great thing!
For coins with dispersed chips, if you pull up 10%, there are 1000 retail investors waiting to sell. For coins with concentrated chips, the market maker can easily maneuver between positions, guiding the market as they wish and can always go to the moon.
When the market maker wants to push the price up, do they need to worry about retail investors selling against them? No, they don't. The only concern is other large whales. Typically, these new coins are deeply tied to the market makers and exchanges, with very few chips available outside.
In this case, the market maker is the only short seller. As long as they don't sell, the coin can soar to the moon. What we are betting on is whether the market maker wants us to make money.
2. No or few airdrops = No free riders selling off
Not issuing airdrops means that everyone on board has spent money. This achieves a uniform cost basis, and everyone’s cost is similar (except for the market maker themselves), eliminating any selling pressure from zero-cost holders, making all calculations predictable.
Without airdrops, every seller in the market is either cutting losses or taking profits. This makes the candlestick chart very authentic, allowing the market maker to easily gauge retail investors' psychology, making it light in the market and easier to push up.
3. Only list on Binance Alpha/Contracts, accumulate opposing positions
This is the essence of the essence!
Do you think only listing contracts is a bad thing? NONONO! Have you considered that this is orchestrating a scheme? Contracts do not focus on chips but rather on capital strength. The market maker controls 90% of the spot market, and with the double insurance of contracts, they can always keep the token price in their hands.
Do people think trading cryptocurrencies can make money? I think it can!
But the premise is — understand the rules, strong execution If you understand these, perhaps you can avoid detours:
The three iron rules of trading cryptocurrencies, remember them well!
1. Never chase highs, FOMO is the trap for retail investors When others are frantically grabbing, you need to stay calm;
When the market is in panic and falling, that's the opportunity for smart people to enter quietly.
2. Don't lock yourself in with heavy positions, operations need to be flexible The market is ever-changing, don't put all your eggs in one basket;
Reserve some flexible positions to seize the next opportunity.
3. Full positions = retail investors, diversified positions are the way to go Full positions block your exit, risks go off the charts;
Reasonable diversification is the key to seeking victory amidst volatility.
Don't ignore these tips:
1. Don't act rashly during a sideways market, keeping your patience is the way to profit Sideways markets test your patience, many rush to act and end up losing;
Stay composed, and your profits won't be washed away.
2. Key intervals are often the prelude to major market movements High or low sideways for too long isn't a dead market but a buildup of momentum;
Wait for a strong volume candle, that's the signal to enter.
3. Building positions is like constructing a pyramid, entering in batches is more prudent Don’t go all in at once, build positions in layers and increase gradually,
This can both reduce risk and stabilize your mindset.
4. Don’t clash with violent fluctuations, strategies should follow the market Don't be greedy when prices surge, don’t be timid when they drop sharply;
Controlling emotions is the dividing line between experts and retail investors.
Trading cryptocurrencies is not gambling, it's a combination of strategy + discipline + mindset cultivation.
Remember: Those who make money never rely on luck, but on understanding and execution!
Currently, from the daily chart perspective, there was a significant drop yesterday with panic funds fleeing, and the bearish forces are strong. However, in terms of the pattern, it has not truly broken below 87000. The MACD pattern shows that the selling side is actually weakening; the overall trend is downward, and we just need to wait for a rebound to short. On the four-hour chart, short-term trades can be made near 87000, with a stop loss at 86000 and a target around 89000. From the 3-day chart perspective, it has broken the trend line, and the moving averages have crossed bearishly below the lifeline, indicating a need for a second retest. The MACD has crossed bearishly, and it will still experience fluctuations and corrections. There is support around 85000, and since there hasn't been a significant increase in volume, a retest can be used for long positions. The larger cycle trend is downward, and the strategy is to set up for a long short during the rebound.
Remember, memes are part of the attention economy. When the market is good, attention is higher; when the market is bad, attention is low.
The penguin pumps, Marc Andreessen changes backgrounds, the White House supports, Elon Musk supports, various official endorsements; essentially, one coin after another can be issued, but they are all the same thing. The attention is focused on the penguin first, and then the events follow, demonstrating strong manipulation.
The clawd lobster pump to 10m is also a reflection of attention. I see that even the divine fish are discussing the lobster, this Claude AI assistant, which has a large spread and engages a crowd that exists between web2 and web3.
How to capture this popularity? It's quite mysterious; the real sensory experience is more important.
On BSC, for meme coins, some people use WeChat index, which is essentially a branch; on PUMP, it's trending on TIKTOK.
For the SOL chain, everyone uses Google global index, the level of attention from major official accounts, etc.
Bitcoin has once again formed a death cross, failing to timely recover the EMA 10-day line and the 20-day line for three consecutive days. Referencing the $92000 resistance level, this is a very bad sign. Currently, the daily bearish trend is evident, and it is highly likely that the price will break below the $88000 support level and test the $84000 support level again. Keep an eye on these two support levels.
From the 4H and higher level trends, the recent price has been repeatedly suppressed by the 4HMA250. Its overall operational framework is still within the suppression range formed by the previously mentioned: M-shaped top neck line, daily MA30, and the declining three methods structure.
Taking the 4HMA250 as a reference point, the upper suppression structure is dense, which does not support bulls to directly gamble; it only allows for high selling after producing an upward departure. This is the basic situation at a larger scale.
From the 1H and lower levels, the long cycle structure resonates with the views mentioned above, and under the background of dense suppression, chasing the rise is not allowed. It is still necessary to guard against a decline first, only supporting low buys after different degrees of pullbacks at various levels, with reference points as follows:
Short-term resistance remains at the current position up to 90799 (4HMA250), keeping an eye on short-term strength and weakness as a reference, not prioritizing trades. The area of selling pressure is concentrated at 92150~93220 (after reaching, small-level slow rises for high sells, or considering low buys after a pullback to 91250),
Short-term support is at 88710~87990 (aggressive type, referring to yesterday's model for quick in and out), with the second support at 85770~84655 (can be placed), previous large-scale hanging orders remain effective.
DASH has always respected the EMA21 moving average.
After breaking through and pulling back, it supported the rebound.
After falling below and rebounding, it pressed down on the decline.
Now DASH is nearing the daily EMA21 again.
Around the moving average, wait for an intraday oversold condition, find a position to go long, aim for the previous high on the rebound, and set the stop loss below the moving average.
According to Bitcoin's data, the turnover rate is still quite low, and the main selling is still from short-term investors. Investor sentiment remains relatively stable, and there are no signs of deepening panic. After all, from the current situation, the crisis of tariffs has been resolved. Now it seems to be a strong retaliation against Trump, and hopefully, it can be resolved quickly. The chip structure is still very stable, and there are no signs of collapse. Moreover, more chips are gathering around $90,000. Currently, the gathering between $83,000 and $92,000 is a bit excessive, and it is also evident that the willingness of holders to sell is relatively low.
January 22: BTC, ETH, SENT, FIGHTF, CHZ, SANTOS market analysis
I think I've figured out Trump's trading tactics; first, he creates negative news out of thin air, then generates positive news through a taco approach, and a perfect harvest is completed. Yesterday at the Davos Forum, Trump said he would not take military action against Greenland and would not impose tariffs on Europe because of Greenland, leading to a market rebound. Bitcoin has returned to around 90,000, but looking at the 4-hour level, it is still unstable. Unless it stabilizes above 96,000 again, there is still no hope in the short term; just avoiding new lows would be good. BTC
From the daily chart perspective, BTC has broken below the lifeline with increased volume. Yesterday's volume pattern showed some bullish support, and the MACD indicates weakening bearishness, but overall, the bearish strength is strong. A rebound near the lifeline could be a point to short.
Don't catch the falling knife! Warning: DOGE's decline is driven by forced liquidations, and the rebound is extremely weak.
The price of Dogecoin has fallen to a position that is crucial for long-term analysis. The multi-year chart structure is beginning to show similarities to the pattern seen before the last historic surge (2020-2021 cycle), which has attracted close attention from analysts. 📈 Macro Structure: Possibly in the accumulation phase of the 'Fourth Wave' Based on Elliott Wave Theory, the movement of Dogecoin since its peak in 2021 can be interpreted as a grand market cycle: Previous Waves: A strong 'Third Wave' peaked at around $0.48 in December 2024. Current Stage: The price subsequently entered the 'Fourth Wave' adjustment, operating within a descending channel that has lasted over a year. The key point is that this channel has not destroyed the overall upward structure, and its form is similar to the long-term consolidation phase before the significant rise in 2021.
Although the market has not been very good these past two days, the trend of $MSVP is quite stable, the structure is clear, and there hasn't been a significant drop in volume. There aren't many projects that can hold up in a weak market.
The key is that we are still in the early stages; the official airdrop has not been issued yet, but early participation rewards have already been announced: Holding tokens + whitelisting gives you a chance to receive the airdrop and can also unlock platform permissions in advance.
Btc has been continuously declining in the short term, with signs of stabilization at a lower level. During the early hours, a spike occurred but was largely recovered, so a period of short-term fluctuation will likely build a bottom. On the 4-hour level, one can wait for a divergence to enter a long position.
The target entry point is approximately around 88500u for long orders, which is near the dividing line of the second bottom exploration. For defense, one can refer to the recent short-term low. If successfully entered, there could be a profit of around three thousand points or more, which is worth a gamble.
What is narrative? In a nutshell, narrative is not about what this cryptocurrency does, but rather about what reasons the market is willing to assign it a value? Or to put it another way, when you buy this cryptocurrency, you are not asking if it can make money, but rather if others are willing to pay for this story?
Once you have this story, what you need to do is not to immediately take a position, but to immediately ask yourself, can this story ferment? Is there a main player involved? This is the hardest point to judge, and it requires more understanding and trial and error to accumulate experience over the long term, because the primary market never simply gives money for a correct story, but depends on whether someone is willing to continuously buy into this story. You must first understand one thing: not all narratives are qualified to ferment.
So what constitutes a fermentable narrative? This can actually be broken down into three layers, and the order cannot be mixed up.
The first layer: there is no one promoting it, no main player, only emotions. The first to buy in the primary market is definitely emotions. Whether there are emotions depends fundamentally on whether this story can be quickly understood, quickly spread, and quickly internalized. Usually, this only happens in a wave, quickly rising and then quickly falling back after the emotions dissipate. Once emotions calm down, everyone just takes a bite and runs, without any momentum.
The second layer: observe the main player. Emotions can only spark the fire, but whether the fire can grow depends on whether someone continues to add fuel. The role of the main player is not to pump the price but to control the rhythm. When to pump, when to stop, when to give a correction, and when to push again.
The third layer: observe whether there are big players with expectations to promote it. Or co-founders on the Solana chain, like Old Ma, etc. This step is the last layer and also the most important one. Its role is not to create a narrative, but to amplify an already existing narrative, with funds willing to take turns buying in.
So ultimately, the essence of narrative is never about how well the story is told, but rather whether funds are willing to pay for this story?