After a staggering rally exceeding 200% within the first two weeks of November, Dogecoin (DOGE) has entered a consolidation part. Crypto analyst Kevin (@Kev_Capital_TA) suggests this may very well be the calm earlier than the storm, hinting at a possible surge much like a earlier market cycle.
Is Dogecoin Heading In the direction of $4?
Kevin notes that in Dogecoin’s final cycle, the memecoin consolidated for twenty-four days after its first huge rally earlier than ascending once more to what he describes because the “macro golden pocket”—a worth vary between $3.80 and $4.00 which aligns with the 1.618 Fibonacci extension stage.He believes that if DOGE follows a similar trajectory, worth may skyrocket by the top of the week, doubtlessly resulting in a brand new all-time excessive (ATH) by the top of the month.
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“In Dogecoin previous cycle when it had it’s first main leg up it consolidated for twenty-four days after that transfer earlier than legging up once more to the macro golden pocket. If DOGE have been to comply with the same path that might imply that that the subsequent leg will begin by the top of the week and Doge will start its path the macro golden pocket which is at $3.80-$4.00,” Kevin states.
Nevertheless, he tempers expectations by acknowledging that such astronomical efficiency is difficult to foretell: “That might be astronomical efficiency although and it’s arduous to make that kind of name. Let’s begin with making a brand new ATH by finish of month like I predicted again in September.”
The present worth place of Dogecoin is crucial. Analyzing the each day DOGE/USD chart, Kevin observes that DOGE is “actively testing this main pattern line of help on the each day RSI.” A breach of this help may “speed up draw back. Bulls desires this to carry if potential.”
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He provides that whereas the RSI pattern line held on the each day shut, “it must bounce now if we’re going to maintain it.” The affect of Bitcoin’s (BTC) worth motion may very well be pivotal: “If BTC can leg up, it might save us,” he notes.
Bitcoin itself has been consolidating since reaching a reported ATH of $99,588 on November 22, buying and selling inside a variety of $90,800 to $98,500. Kevin describes a “tug of warfare between worth motion and this downward momentum on the symptoms,” because the each day MACD reveals elevated draw back momentum that the value isn’t reflecting. He emphasizes that “one in all them goes to win ultimately.”
On the 4-hour BTC/USD chart, Kevin highlights a symmetrical triangle sample nearing its apex, suggesting an imminent breakout. Regardless of latest volatility, “BTC nonetheless has not damaged down and even closed a 4HR candle under this pattern line,” indicating sturdy help ranges.
He additionally factors out vital liquidation ranges round $100,000, stating that “it’s solely a matter of time earlier than BTC decides to return up and take that liquidity at $100K.”
Such a transfer by Bitcoin may herald the subsequent main worth surge for Dogecoin, aligning with the patterns noticed within the final cycle. Kevin’s evaluation means that the interaction between Bitcoin and Dogecoin costs stays an important think about predicting the subsequent market actions.
At press time, DOGE traded at $0.4194.
Featured picture created with DALL.E, chart from TradingView.com