Billionaire shorters are like vampires, they need fresh blood to feed.
DOGE is the perfect tool for short sellers, and heres why:
Publicity: The worlds richest person is able to make naive newcomers buy over and over by tweeting when taking toilet breaks for his own entertainment. Everytime fresh blood buys in, large institutional shorters have liquidity to fill their positions. In addition, when attention is brought to the asset, newcomers are inclined to search Tradingview, Youtube, Reddit or other echo-chambers which will usually give them unopposed unrealistic bullish prospects made by other bagholders or paid actors which will confirm their faulty bias. Its the perfect setup to exploit.
Technical analysis: It is currently an asset that is easier to dump than pump, since it has gone through its euphoric phase and already gained 22000% from its previous consolidation range, which makes it MASSIVELY overvalued. All the analysis needed is to realize that the parabolic rise since COVID is broken. Technically the asset qualifies perfectly for a high timeframe broken parabola correction.
Psychological analysis: After the euphoric phase in May, many potential buyers are sad that they missed out on the extreme gains, which make them more susceptible to making irrational investements, hence buy into the publicity model. It is reasonable to expect this phase to last until a final flush-out = which most likely is the breakout from this bearish structure, a descending triangle.
So, retail buyers will keep filling the shorts of the big players. As long as retail buyers think price is "hitting a massive support" or "breaking out of triangle", the game will keep going the market is exhausted and price collapses.
Expecting price to "consolidate" around this range until it either meets resistance or keeps consolidating past the descending resistance, before breaking to the downside. Zoom out and discover that the market is far from exhausted when it comes to losses.
DOGE is the perfect tool for short sellers, and heres why:
Publicity: The worlds richest person is able to make naive newcomers buy over and over by tweeting when taking toilet breaks for his own entertainment. Everytime fresh blood buys in, large institutional shorters have liquidity to fill their positions. In addition, when attention is brought to the asset, newcomers are inclined to search Tradingview, Youtube, Reddit or other echo-chambers which will usually give them unopposed unrealistic bullish prospects made by other bagholders or paid actors which will confirm their faulty bias. Its the perfect setup to exploit.
Technical analysis: It is currently an asset that is easier to dump than pump, since it has gone through its euphoric phase and already gained 22000% from its previous consolidation range, which makes it MASSIVELY overvalued. All the analysis needed is to realize that the parabolic rise since COVID is broken. Technically the asset qualifies perfectly for a high timeframe broken parabola correction.
Psychological analysis: After the euphoric phase in May, many potential buyers are sad that they missed out on the extreme gains, which make them more susceptible to making irrational investements, hence buy into the publicity model. It is reasonable to expect this phase to last until a final flush-out = which most likely is the breakout from this bearish structure, a descending triangle.
So, retail buyers will keep filling the shorts of the big players. As long as retail buyers think price is "hitting a massive support" or "breaking out of triangle", the game will keep going the market is exhausted and price collapses.
Expecting price to "consolidate" around this range until it either meets resistance or keeps consolidating past the descending resistance, before breaking to the downside. Zoom out and discover that the market is far from exhausted when it comes to losses.
Note
Expecting the price to behave the same way as in 2020-21 is like expecting a plane to fly around the globe only on a half way filled tank of fuel.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.