Dogecoin Trader Explains Why Shorting DOGE Now Makes Sense

Independent market analyst will short-circuit Dogecoin even further if Elon Musk goes ahead with his plan to add DOGE payments to Twitter.

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Dogecoin (DOGE) has surged nearly 100% since the start of the quarter (QTD) on hopes that Elon Musk would integrate the token on the Twitter platform. However, the potential for DOGE to continue its uptrend in the coming weeks is low, according to a popular market analyst.

Short Dogecoin hard?

Independent market analyst GCR said it is moderately short on DOGE based on its price's recent reaction to a tweet from Musk. Notably, DOGE formed a local top at $0.158 on November 1. On the same day, Musk shared a photo of his pet Shiba Inu wearing a Twitter logo t-shirt.

pic.twitter.com/eaIYaDRBnu

— Elon Musk (@elonmusk) November 1, 2022

GCR says the Musk Effect is fading when it comes to potential Dogecoin integration into Twitter, meaning most of the gains are already priced in. Therefore, if the actual integration happens, it will likely become a sell-the-news event.

dog stock only has 2 bullets

chip 1 – mushy tweets/teasing about onboarding; already fired

chip 2 - official twitter integration; did not tour, but would sell the new

I'm moderately short on doggo, but allow room to short harder if they fire a second shot

— GCR (@GCRClassic) November 3, 2022 Overbought correction begins

Meanwhile, Dogecoin continued its correction on November 4, three days after hitting $0.158.

DOGE's price fell to $0.115 on November 4, partly due to rumors that Twitter was suspending its crypto wallet development project. This brought the token's net percentage correction from the November 1 local high to nearly 27%.

Furthermore, the bearish movement appeared due to its