- Mishaboar cautions traders against leverage trading, warning of severe losses as influencers promote risky, high-leverage narratives online.
- Dogecoin’s price movement shows signs of an ascending triangle pattern, indicating potential for a bullish breakout if momentum holds.
- Despite weekly gains, Dogecoin faced mild profit-taking, with its RSI nearing mid-levels, hinting at short-term market consolidation.
Dogecoin community figure Mishaboar has cautioned traders against high leverage trading amid growing volatility in the crypto market. His warning comes as several crypto influencers promote aggressive leverage strategies, urging investors to amplify positions despite potential risks.
According to Mishaboar, traders should be wary of ongoing campaigns encouraging high leverage across social media. He noted that such narratives could attract inexperienced investors, many of whom may not fully grasp the risks associated with leveraged derivatives. Crypto leverage trading allows traders to borrow funds to increase exposure to market movements, but losses can escalate just as rapidly as gains.
Warning Against Compounding Risk
Mishaboar emphasized that trading with leverage compounds the already volatile nature of cryptocurrencies. He explained that even holding spot positions in digital assets involves significant risk, and using borrowed funds to trade magnifies this exposure. “You will almost certainly lose it all,” he warned, stating that the outcome is a matter of time rather than possibility. His remarks reflect a broader concern that speculative behavior could destabilize community trading sentiment.
Meanwhile, Dogecoin showed resilience during the week, climbing above $0.24 as traders sought safer alternatives amid macroeconomic uncertainties and a potential government shutdown. The upward momentum reflected a temporary advantage for bullish traders, though overall market sentiment remains mixed.
Chart Patterns Indicate Potential Breakout
Technical indicators suggest Dogecoin continues to move within a wide range between $0.14 and $0.29. Analysts observed that the price action appears to be forming an ascending triangle pattern, hinting at a possible breakout if the token closes above $0.29. Should buyers sustain this momentum, Dogecoin could advance toward $0.39. However, a reversal could invalidate the bullish structure and extend the current consolidation phase.
The daily Relative Strength Index has drifted toward the mid-50 level, indicating a possible short-term slowdown as traders engage in profit-taking. As of Saturday, Dogecoin slipped 1.51 percent to $0.252, suggesting temporary exhaustion among buyers. Market participants are expected to monitor upcoming sessions closely to assess whether the token can maintain its recent gains or remain within its existing range.
