Dogecoin Boom Over? Crypto Analyst Warns Of Sudden Sell Signal

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As a seasoned researcher with years of experience in the crypto market, I find myself always intrigued by the ever-changing dynamics of Dogecoin (DOGE). This time around, the analysis of Kevin (@Kev_Capital_TA) has caught my attention. His recent update on DOGE/USDT presents a complex picture that warrants careful consideration.

Following an impressive surge at a large-scale event, Dogecoin‘s price has entered a period of stabilization or consolidation. This trend is evident not only in the price movement but also in the technical indicators. Cryptocurrency expert Kevin (@Kev_Capital_TA) cautions that a sell signal might be imminent. In his recent analysis on platform X, Kevin presented a weekly Dogecoin-to-USD Tether chart and highlighted technical signals that investors should watch carefully.

Dogecoin Price Analysis

Kevin pointed out that Dogecoin is showing signs of selling pressure on the weekly chart, indicated by the red dot. He emphasized that this signal needs to be confirmed over the coming week to reinforce its authenticity. He noted the alignment of three robust technical factors:

These signs together seem to point towards an upcoming risk or setback, but Kevin countered this by noting that “the market’s behavior remains optimistic with a positive trend in trading activity,” implying that the bullish indicators currently have more influence than the bearish ones.

Although long-term indicators suggest potential selling, Kevin maintains a hopeful stance about short-term bullish trends for the market. He pointed out that Dogecoin recently recorded its highest monthly candle close ever, which represents a notable achievement, even as he cautions that there’s still a chance of a downturn.

In the future, Kevin emphasized the significance of a crucial resistance point at $0.60, saying, “If we don’t surpass this level cleanly, there’s not much to get too excited about,” referring to his weekly chart that incorporates Fibonacci price levels reaching up to $1.00.

Beyond this, Kevin is paying close attention to economic trends that might impact Dogecoin’s progression. He suggested that a period known as an “altcoin season” could boost DOGE’s resilience, but only if Bitcoin‘s influence drops below the 55% threshold. In simpler terms, he said, “If Bitcoin Dominance falls below 55%, you can expect your ‘altcoin season’.

Moreover, Kevin explained his approach concerning long-term moving averages, saying, “Whenever these long-term moving averages intersect on Dogecoin, I plan to offload a substantial portion of my holdings. These moving averages have accurately predicted the peak for DOGE on several occasions. They are climbing rapidly!

Specifically, the crypto expert is discussing the Pi Cycle Top Indicator for Dogecoin, a tool usually employed with Bitcoin (BTC). This indicator predicts possible market highs based on the intersection of two moving averages: the 111-day and the 2 * 350-day.

In the past week, Kevin shared an intriguing insight: “I’ve found that the Pi Cycle tops indicator, which is usually effective for Bitcoin alone, has a surprising application in Dogecoin. Remarkably, it has accurately predicted every Dogecoin cycle top and bottom throughout its various cycles. I intend to make substantial withdrawals from the market when the two moving averages intersect and the Monthly RSI reaches a specific level.

At press time, DOGE traded at $0.41.

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2024-12-02 12:40