Dogecoin Boom Over? Crypto Analyst Warns Of Sell Signal
After experiencing a sharp rise, Dogecoin price is currently in a consolidation phase. And this is also reflected in the technical indicators. Cryptocurrency analyst Kevin (@Kev_Capital_TA) warns of potential sell indicators. in his latest renew On X, Kevin shares the DOGE/USDT weekly chart and outlines the technical signs that traders should pay close attention to.
Dogecoin Price Analysis
Kevin emphasized that Dogecoin is “printing a sell signal with a red dot on the weekly time frame,” and warned that the signal needs to be confirmed next week to solidify its validity. He found convergence in three strong technical indicators, including the declining Moving Average Convergence Divergence (MACD) and the Stochastic Relative Strength Index (Stoch RSI), which is “awaiting the top of a bear market crossover.”
Together, these indicators suggest a potential downside could be imminent. However, Kevin balances this with the observation that “price action remains bullish and so are fund flows,” suggesting that these factors currently outweigh the bearish signals.
Despite the long-term sell signal, Kevin remains open to the possibility of continued gains. bullish momentum In the short term. He noted that Dogecoin “marked a significant milestone with its highest monthly candle close ever,” while acknowledging that “the downside remains a risk.”
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Looking ahead, Kevin noted the importance of key resistance levels, stating, “Until we get a clean break above 0.60 cents, there’s nothing to really get excited about,” with his weekly chart including Fibonacci price levels extending to $1 .
Additionally, Kevin is paying close attention to macroeconomic factors that may impact Dogecoin’s performance. He pointed out, “Altcoin Season” could serve as a catalyst for DOGE’s continued strength, assuming Bitcoin dominance breaks below the 55% level. “If BTC dominance fully breaks through the 55% level, you’ll get your #ALTSEASON friends,” he explained road.
Additionally, Kevin shared his strategy regarding long-term moving averages, stating: “When these two long-term moving averages cross on Dogecoin, I will be selling a big chunk of my bag. They have called top Successful on DOGE many times. They are making rapid progress! “
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Notably, the cryptocurrency analyst was referring to Dogecoin’s Pi Cycle Top indicator, a tool traditionally used for Bitcoin (BTC). This indicator relies on the crossover of two moving averages (111-day and 350-day times 2) to signal potential market peaks.
Last week, Kevin revealed, “One of my secret indicators for Dogecoin is the Pi Cycle Top indicator, which is traditionally only available for BTC. It accurately calls each DOGE cycle its top and bottom of each cycle. When two When the moving averages cross and the monthly RSI reaches a certain level, I plan to remove most of my money from the market.”
At press time, DOGE was trading at $0.41.
Featured image created using DALL.E, chart from TradingView.com
