Dogecoin Forms A ‘Nasty Triple Top’: Analyst Reveals What’s Next
Dogecoin price is currently exhibiting a highly bearish chart pattern on the 4-hour time frame, which suggests investors may need to proceed with caution. After a bullish falling wedge pattern formed between November 12 and 19, the expected breakout was short-lived and failed to live up to bullish expectations.
On November 19, Dogecoin broke out of the pattern, spark initial optimism among traders. However, cryptocurrency analyst Kevin (@Kev_Capital_TA) Predictive The breakout would be weak, and subsequent price action confirmed his prediction.
Where will Dogecoin price go next?
Memecoin encountered sharp rejection at major resistance levels, especially the macro 0.786 Fibonacci retracement level. Kevin stresses that there’s nothing to get too crazy about until the level is “completely and violently broken.” He also noted that Bitcoin (BTC) is trading at major resistance levels, suggesting that Dogecoin’s next big move could be related to Bitcoin crosses $100,000 mark. “Until then, everything is going to be chaotic,” he noted.
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Kevin urged traders to control their enthusiasm, “Please control your excitement, because there is nothing to be excited about in the short term. BTC is still at major resistance levels, and so is Dogecoin. Nothing is broken yet.” He emphasized The importance of Bitcoin’s movement, adding: “Providing technical analysis of Bitcoin is more important than Dogecoin at the moment. DOGE is just trading sideways, waiting for Bitcoin to make a decision to go higher or lower. Where does Bitcoin go in the short term? , that’s where Doge will go.”
Analyzing the 4-hour chart, Kevin discovered that Dogecoin had a “nasty triple top” at the macro 0.786 Fibonacci level – a bearish sign that could signal impending downward pressure. He warned that if a $0.30 pullback occurs, as he previously suggested, “a lot of blind permanent bulls will have some explaining to do.”
A triple top is a bearish reversal pattern in technical analysis that indicates a possible shift from an uptrend to a downtrend. This happens when the price reaches the same resistance level three times and falls back after failing to break through each time. Dogecoin has repeatedly been unable to break above the 0.786 Fibonacci level at $0.41, indicating that the short-term bullish momentum is weakening.
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Kevin emphasized that Dogecoin has yet to truly break out: “Until it breaks out cleanly above the macro 0.786 Fib at $0.41, it’s just trading sideways.” Looking ahead, he outlined a bullish scenario that hinges on overcoming this key resistance level. “If Dogecoin breaks strongly above the 0.786 Fib macro level, then the price will rise to $0.80 to $0.85. But there is still a lot of work to be done. Bitcoin needs to be pushed higher,” he explained.
Kevin has been predicting a bigger correction for Dogecoin for several days. The formation of a triple top and rejection of the 0.786 Fibonacci level supports his main hypothesis. He outlined his initial price target: “We would like Dogecoin to remain within the $0.30 to $0.26 range, which is the gold pocket retracement level. This is a 30-40% correction from the local top, which is a perfectly sized correction in a bull market. “
focus on longer term perspectiveKevin emphasized the importance of the upcoming monthly candle close. “The next big target for Dogecoin is a close above $0.335 in 11 days. This would give DOGE its highest monthly candle close ever, and I will be watching this closely,” he said.
At press time, DOGE was trading at $0.39.
Featured image created using DALL.E, chart from TradingView.com
