How Low Can Dogecoin Go Before Rallying Again? Expert Forecast

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As a seasoned researcher with years of observing and analyzing cryptocurrency markets under my belt, I find myself intrigued by the current state of Dogecoin (DOGE). The rapid surge we’ve witnessed over the past eight days has been nothing short of breathtaking, reaching a local peak at $0.4385 on Tuesday. However, as someone who’s learned the hard way that every moon shot needs a correction phase, I can’t help but feel that this might not be the end of DOGE’s current downturn.

Over the last eight days, Dogecoin (DOGE) has seen an incredible surge, increasing by around 200%. On Tuesday, it peaked at $0.4385. This rapid increase has pushed its daily Relative Strength Index (RSI) close to 93, indicating extremely high levels of the coin being bought, which suggests potential overbought conditions.

Following that point, the price of Dogecoin dropped by 19%, currently standing at $0.37 at the time of this report. Crypto expert Kevin (@Kev_Capital_TA), renowned for his Dogecoin market analyses, suggests that the downtrend might not have ended just yet. In a sequence of updates, Kevin discusses potential lows that Dogecoin may reach before it continues its upward trend.

How Low Can Dogecoin Go?

Kevin mentioned that our initial goal and a desirable zone for Dogecoin could be around $0.30 to $0.26. This range represents typical retracement levels during market corrections, often referred to as ‘golden pockets’. In a thriving bull market, a 30-40% drop from the peak is an ideal and common correction.

Kevin elaborated on the importance of RSI levels in forecasting market trends, stating that a moderate 1-3 week pullback or consolidation could be advantageous for Dogecoin. He pointed out that such occurrences took place several times during its ascent in 2020-2021. Maintaining his perspective, he believes this event may transpire shortly, given the technical indicators he’s observing.

Comparing it to the 2020-2021 Dogecoin bull market, he pointed out: “During that period, Dogecoin reached over 90 on the daily RSI three times, each occasion signaling either a local peak or consolidation phase before another rise. Now, we’ve hit over 90 on the daily RSI for the first time, suggesting there might be 1-2 more growth phases left in this bull market before we reach the overall top. Note: The second and third growth phases were both larger than the initial one.

On lower time scales, the Dogecoin’s price movement created a symmetrical triangle, a pattern typically linked with periods of consolidation before substantial price shifts. Kevin noted: “Following this peculiar Dogecoin symmetrical triangle. Frankly, it’s a toss-up which direction this breaks. I still lean towards a correction due to the daily RSI being over 90.

In different market situations, a symmetrical triangle might function as a signal for continued trends or a possible reversal. Regarding Dogecoin’s price movement, the breakout from this triangle corresponds with Kevin’s prediction that a correction would occur because of elevated Relative Strength Index (RSI) levels.

Traders calculate an approximate size of the anticipated price decrease after the symmetrical triangle breaks by determining the height of the triangle’s base (its broadest section). They then project this measurement straight down from the point of breakout, which gives them a potential goal or range for the price adjustment.

Applying this approach to Dogecoin seems to indicate a potential adjustment towards approximately $0.28 in price, which lines up well with Kevin’s forecast predicting a fluctuation between $0.30 and $0.26. In simpler terms, Kevin has observed market movements indicating the start of a correction on Dogecoin. He also added that while the coin can’t continue to rise straight away, dips are beneficial as they help reset indicators for further growth. He hopes no one will be upset with him anymore for sharing his honest analysis.

Currently, Dogecoin is valued around $0.37 per coin. It has decreased approximately 19% from its recent peak. At the moment, it seems like the price has temporarily halted at $0.35, but with the Daily Relative Strength Index (RSI) still at 80, which indicates overbought conditions, there’s a possibility that the decline could continue further.

Kevin emphasized that a 1-3 week period of moderation or stabilization, which could help calm down the indicators for Dogecoin, would be highly advantageous. This situation has occurred multiple times during its growth in 2020-2021, and he believes it will happen again soon, supported by the technical analysis he is following.

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2024-11-15 18:04