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After a spectacular rally that exceeded 200% in the first two weeks of November, Dogecoin (DOGE) has entered a consolidation phase. Crypto analyst Kevin (@Kev_Capital_TA) suggests that this could be the calm before the storm, pointing to a possible surge similar to the previous market cycle.
Is Dogecoin Heading For $4?
Kevin notes that in Dogecoin’s last cycle, memecoin rallied for 24 days after its first major rally before rising to what he describes as a “big gold pocket”—a price range between $3.80 and $4.00 consistent with the expansion rate of Fibonacci is 1.618. He believes that if DOGE follows the same path, prices could rise by the end of the week, possibly leading to a new all-time high (ATH) by the end of the month.
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“In Dogecoin the previous cycle when it raised its first leg got stronger for 24 days after that move before it went up again to the big gold pocket. If DOGE were to follow the same path it would mean that the next leg will start at the end of the week and Doge will start his way to the gold pocket the big one is $3.80-$4.00,” said Kevin.
However, he dampens hopes by admitting that the performance of such stars is difficult to predict: “However that would be the performance of the stars and it is difficult to make that call. Let’s start by making a new ATH at the end of the month as I predicted in September.”
The current position of Dogecoin price is important. Analyzing the daily DOGE/USD chart, Kevin notes that DOGE is “actively testing this major support line on the daily RSI.” A breach of this support could “accelerate the decline. The bulls want this to be delayed if possible.”
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He adds that while the RSI line is holding steady every day, “you need to jump now if we’re going to hold it.” The impact of Bitcoin’s (BTC) price movements can be significant: “If BTC can grow, it will save us,” he notes.
Bitcoin itself has been rallying since reaching a reported ATH of $99,588 on November 22, trading within a range of $90,800 to $98,500. Kevin explains “the tension between price action and these bearish indicators,” as the daily MACD shows rising momentum when price doesn’t. He insists that “one of them will succeed in the end.”
On the 4-hour BTC/USD chart, Kevin highlights a congruent triangle pattern near its apex, suggesting an imminent breakout. Despite the recent volatility, “BTC still hasn’t broken or even closed the 4HR candle below this trendline,” indicating strong support levels.
He also points out important capping levels around $100,000, saying “it’s only a matter of time before BTC decides to show up and take that $100K.”
Such a move by Bitcoin could herald the next big price increase for Dogecoin, in line with the patterns seen in the last cycle. Kevin’s analysis suggests that the interaction between the prices of Bitcoin and Dogecoin remains an important factor in predicting the next market movement.
At press time, DOGE traded at $0.4194.
The featured image was created with DALL.E, a chart from TradingView.com