Buy Dogecoin Now Or Wait? Analyst Points To Key Technical Indicator

Share This Post

The Dogecoin price has put in a sensational performance since November 4th. In the past 10 days, Dogecoin has risen by an incredible 170%, with no major correction to date. After reaching its highest level since May 2021 at $0.4385 on Tuesday, the DOGE price was trading at just under $0.40 at the time of writing.

Buy Dogecoin Now Or Wait?

Crypto analyst Kevin (@Kev_Capital_TA), who recently gained significant attention on X (formerly Twitter) for his Dogecoin price analysis, has posted a series of updates addressing the question on whether investors should buy Dogecoin now or wait for a potential market correction.

Kevin revealed that he has started taking profits from his Dogecoin holdings due to recent price appreciations. “I sold an additional 3% of my Dogecoin bag at $0.39,” he stated. “That makes for a total of 8% of my entire DOGE bag sold. I have 92% of my bag remaining.”

He outlined a systematic approach to profit-taking as the price climbs, with specific targets in mind. “My next planned take profit area will be previous all-time highs, then $1 if we get there. My goal is to have 25% of entire bag sold by the time we get to $1, then we ride from there and play it as it goes.”

Despite the bullish momentum, Kevin warns of an impending market correction that could impact Dogecoin significantly. “The correction that is inevitably coming is going to melt so many weak hands away; it’s gonna be wild to see,” he cautioned. He observed that while many altcoins have already undergone corrections—some by as much as 20-25%—Dogecoin has been an exception. “Basically all altcoins are getting the correction I called for besides Dogecoin,” he noted.

Kevin’s analysis centers on a key technical indicator, the Relative Strength Index (RSI), which measures the speed and change of price movements. A high RSI indicates overbought conditions, suggesting a potential price reversal. “Still keeping a close eye on Dogecoin for a sharper drop,” he commented. “Based off history and the current technicals, it still heavily supports a correction to cool off indicators before heading higher.”

He pointed out that Dogecoin’s daily RSI has reached alarming levels. “Daily RSI just tapped 94 again and the 0.786 FIB [Fibonacci retracement level]. I think this is the likely scenario in the short term,” Kevin explained. “That RSI needs to cool off badly.”

Kevin predicts a short-term price decline for Dogecoin before a resurgence. “I think Dogecoin will go back to $0.26–$0.28 and then reload to come back up and break ATHs [all-time highs],” he stated.

While acknowledging that a surge in Bitcoin’s price could temporarily boost Dogecoin, he remains cautious. “If BTC taps $94K–$95K in the short term, it will drag DOGE higher, but I still think we get a bigger correction before heading higher,” Kevin asserted.

Despite short-term concerns, Kevin maintains a positive long-term outlook for Dogecoin. “The Dogecoin monthly RSI is currently at 74, which is full bull market territory,” he highlighted. “The Monthly RSI tops out in DOGE bull markets anywhere from 88–98. We got a long way to go, folks.”

He also cautioned against unrealistic price predictions propagated by some influencers. “If your Twitter #Crypto Guru is telling you #Dogecoin is going to $28, I urge you to unfollow them. It’s pure clickbait and is literally close to impossible,” Kevin warned. “Ask them what the market cap would be at that price level and see how they react. […] They don’t care about you; they want you as exit liquidity.”

At press time, DOGE traded at $0.40.

Dogecoin price

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

2021 Bull Run Déjà Vu? Altcoin Market Gains Momentum

As bitcoin catches its breath on the sidelines, a wave of digital currencies is charging ahead, making big moves Meanwhile, the infamous Altcoin Season Index is climbing, signaling exciting times for

Bitcoin Correction Looms As Analyst Predicts Fall To $85,600

The price of Bitcoin (BTC)  rose by 799% in the past week to reach a new all-time high of $99,655 on November 22 Thereafter, the maiden cryptocurrency has experienced a slight retracement in the

Ripple CEO Predicts US Crypto Boom, 76% of KOLs Shilled Worthless Meme Coins, and More — Week in Review

Ripple CEO predicts US crypto boom, study shows 76% of KOLs promoted worthless meme coins, Coinbase CEO strongly endorses DOGE, and more in this Week in Review Week in Review Ripple CEO Brad

Bitcoin Taker Buy/Sell Ratio Surges On Major Exchanges — Who Is Buying?

The price of Bitcoin has somewhat cooled off, struggling to reach the highly-coveted $100,000 mark, after an intense bullish run all week long However, investors appear to be undeterred by the

Bitcoin Price Is Decoupling From Gold Again — What’s Happening?

Bitcoin has often been referred to as the “digital gold,” as it has proven to be a unique asset class and, more importantly, a reliable store of value over the years While gold surely outpaces

AI, Blockchain Integration Can Boost Trust, Prevent Misuse, Expert Says

Integrating AI with blockchain can enhance AI’s trustworthiness and revolutionize various sectors AI Developers Should Prioritize User Control Stacey Engle, co-founder and CEO of Twin Protocol,