Crypto Analyst Warns Large-Cap Memecoin Could Crash 93%, Outlines Path Forward for Bitcoin, Ethereum and Solana

Analyst and trader Ali Martinez is leaning bearish on a leading memecoin while offering his outlook on three other crypto assets.

Martinez tells his 129,900 followers on the social media platform X that Dogecoin (DOGE) could crash by around 93% from the current level if it breaks down from the lower boundary of an ascending channel – a pattern that has stood intact for over a decade.

“Dogecoin has been trading inside an ascending channel. Since 2014, Dogecoin has tended to rebound from this channel’s lower support trend line to the upper resistance trend line. And from this level, Dogecoin tends to drop back to the lower support trend line and then it rebounds again. Repeating the whole cycle.

But now Dogecoin is at a critical point. If it breaks the $0.19 support level, it could trigger a correction to $0.015.”

An ascending channel is a bullish structure suggesting that an asset is in an uptrend, printing higher highs and higher lows. However, a move below the pattern’s diagonal support may indicate that the asset is primed to enter bear territory.

Dogecoin is trading at $0.211 at time of writing.

Next up is Bitcoin (BTC). Martinez says that based on the Pi Cycle Top indicator, a tool in technical analysis that’s used to predict Bitcoin’s market tops, the crypto king could surge to $150,000 if BTC reclaims the $97,000 level.

Bitcoin is trading at $89,562 at time of writing.

Turning to Ethereum (ETH), Martinez says that it is primed to explode by up to 70% if it moves above a key resistance level.

“Ethereum is testing the lower boundary of this parallel channel. A successful reclaim of $2,350 could fuel a strong recovery toward $3,000 – $4,000!”

Ethereum is trading at $2,245 at time of writing.

Looking at Solana (SOL), Martinez says the altcoin is trading in a right-angled ascending broadening channel and could plunge to $60 if the key support level at around $125 fails to hold.

A right-angled ascending broadening channel suggests that an asset is in an uptrend as it records higher highs while maintaining a horizontal support. A move below the pattern’s support may indicate that a deep drawdown is in sight.

Solana is trading at $147 at time of writing.

Generated Image: Midjourney