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Crypto analyst Kevin (@Kev_Capital_TA) expects a significant increase in the Dogecoin price and expects it to reach between $1 and $2 in late December or early January. This bullish forecast comes amid skepticism about the current breakout patterns seen in the memecoin.
One last dip for Dogecoin price before $1?
This past week, from November 12 to 19, Dogecoin formed a falling wedge – a pattern often considered bullish – on the lower timeframes. On November 19, the crypto asset broke out of this formation, leading to some optimism among traders. However, Kevin is still not convinced of the power of this move.
“This weird little breakout on Dogecoin from this suspicious bull flag seems very weak to me,” he says declared via If cash flow stagnates, my base case of further correction/consolidation becomes more likely. Which, by the way, is even more optimistic if we just go straight from here.”
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When asked by an
Despite his optimistic long-term outlook, Kevin still expects a continued short-term correction for the Dogecoin price. He warned that “many people will be wiped out if this happens.”
He explained his price targets: “My first price target and a level we want to maintain for Dogecoin is the $0.30-$0.26 cent range, which is the golden pocket retrace levels. That is a correction of 30-40% compared to the local top, which is a perfect correction in a bull market.”
In the long term, Kevin foresees much higher price levels. In an analysis using the Pi Cycle Tops Indicator – a tool traditionally applied to Bitcoin – crypto analyst Kevin recently shed light on Dogecoin’s potential long-term market trajectory. The indicator, which is crucial for establishing cycle highs and lows, relies on the intersection of two specific moving averages to indicate significant market shifts.
The shorter-term moving average (MA), which typically takes into account the last 111 days of price data. The longer term MA that calculates the average of the last 350 days but multiplies it by two. The principle of the indicator is based on the theory that when these two MAs cross, a potential spike in the market price is imminent, indicating a pre-recession sell-off. It has traditionally been used in Bitcoin analysis, but as Kevin shows, it can also apply effectively to Dogecoin.
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Kevin’s chart covers several years of Dogecoin price action and clearly marks the highs and lows of the cycle where the Pi Cycle Indicator was accurate. Circled in the chart are the past cycle highs in January 2018 and May 2021, which coincide with the intersection of the two MAs and corresponding price peaks.
The current price movement is on a significant upward trajectory, and although the two MAs are moving towards each other, they have yet to cross. The chart shows a Fibonacci extension level of 1.618 around $4.00.
Kevin writes: “One of my secret indicators for Dogecoin that traditionally should only work for #BTC is the Pi Cycle tops indicator. It has accurately named each DOGE cycle the top and bottom of each of its cycles. When the two moving averages cross and the monthly RSI is at a certain level, I plan to take significant chunks out of the market. As you can see, while the moving averages are now heading in the same direction to eventually cross over, we are still not very close to crossing over, indicating we have a lot more to go higher first.”
At the time of writing, DOGE was trading at $0.38.
Featured image created with DALL.E, chart from TradingView.com