As a seasoned crypto investor with over a decade of market experience under my belt, I find myself cautiously optimistic about Dogecoin’s current price action. Having witnessed numerous bull and bear cycles, I’ve learned to read between the lines when it comes to technical analysis.
right now, the price of Dogecoin is showing a strongly pessimistic chart configuration on the 4-hour scale, which could be a warning for investors. After developing a hopeful falling wedge shape from November 12th to the 19th, the expected breakout didn’t last long and fell short of bullish predictions.
On November 19th, Dogecoin burst free from its pattern, which initially ignited enthusiasm among traders. Yet, crypto expert Kevin (@Kev_Capital_TA) had anticipated that the breakout would be feeble, and the following price fluctuations supported his prediction.
Where Is Dogecoin Price Heading Next?
The memecoin faced a sharp rejection at a significant resistance level, specifically the macro 0.786 Fibonacci retracement level. Kevin emphasized that until this level is “broken cleanly and violently, there’s nothing to get overly crazy about.” He also pointed out that Bitcoin (BTC) is at major resistance, suggesting that Dogecoin’s next significant move will likely coincide with Bitcoin clearing the $100,000 mark. “Until then, everything’s just gonna mosey around,” he noted.
Kevin advised traders to rein in their exuberance, saying, “Let’s try to keep our anticipation in check since there’s nothing immediately exciting about BTC or Dogecoin. Both are currently facing significant resistance levels and no significant breakthroughs have occurred yet.” He emphasized the significance of Bitcoin’s actions, noting that “At present, it’s crucial to focus on analyzing Bitcoin’s movements rather than Dogecoin. Dogecoin is merely moving sideways at the moment, following Bitcoin’s lead in deciding whether to move higher or lower. In the short term, Doge will likely follow Bitcoin’s direction.
By examining the 4-hour chart, Kevin spotted a potential “triple top” formation on Dogecoin at the significant Fibonacci level 0.786—a bearish sign suggesting possible future price declines. He cautioned that if a drop to $0.30 happens as he previously predicted, many doggedly bullish investors might need to provide explanations for their optimistic outlook.
In simpler terms, a triple top is a warning signal in stock market analysis which indicates that an upward trend might be turning into a downward one. This happens when the price reaches the same resistance level (a level where buyers are reluctant to purchase) three times, but fails to break through and rise each time. The repeated failure of Dogecoin to move above the 0.786 Fib level at $0.41 could mean a decrease in the short-term bullish strength.
Kevin emphasized that Dogecoin hasn’t truly broken out yet: “Until it breaks the macro 0.786 Fib cleanly at $0.41, it’s just trading sideways.” Looking ahead, he outlined a bullish scenario contingent on overcoming this key resistance level. “If Dogecoin breaks that macro 0.786 Fib with force, then $0.80 to $0.85 is on the table. Lots of work to do though. Need BTC to push higher,” he explained.
For several days, Kevin has been forecasting a deeper correction for Dogecoin. The triple top formation and rejection at the 0.786 Fibonacci level support his primary hypothesis. He outlined his initial price target: “A level we will want to hold for Dogecoin is the $0.30 to $0.26 range, which is the golden pocket retrace levels. That’s a 30-40% correction from the local top, which in a bull market is a perfect size correction.”
Looking ahead towards future milestones, Kevin emphasized the importance of the approaching monthly price closure within 11 days. “If Dogecoin manages to close a monthly candle above $0.335 in the next 11 days, it would establish a new record for the highest monthly candle close ever for DOGE. I’ll be closely monitoring this development,” he pointed out.
At press time, DOGE traded at $0.39.
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2024-11-20 19:34