The cryptocurrency world has been abuzz with excitement as Dogecoin showcases an impressive performance. Since November 4th, Dogecoin has astounded investors by soaring an incredible 170% without experiencing a significant correction. As of the last update, Dogecoin has reached a peak not seen since May 2021, trading at just under $0.40.
Should You Buy Dogecoin Now or Wait?
Crypto analyst Kevin, who has gained substantial recognition on X (formerly Twitter) for his insights into Dogecoin’s price trends, has been actively updating his followers on whether it is an opportune moment to invest in Dogecoin or if one should anticipate a market correction.
In light of the recent surge, Kevin has begun to take profits from his Dogecoin investments. “I sold an additional 3% of my Dogecoin holdings at $0.39,” he disclosed. “This brings the total to 8% of my entire DOGE investment sold, with 92% still in my portfolio.”
He advocates for a calculated approach to profit-taking as the price ascends, with clearly defined targets. “My next planned profit-taking target will be the previous all-time highs, followed by $1, if it reaches that point. My aim is to sell 25% of my entire holdings by the time we reach $1, then adjust my strategy accordingly.”
Potential Market Correction Ahead
Despite the bullish momentum, Kevin foresees a potential market correction that could significantly impact Dogecoin. “The forthcoming correction is bound to shake off many weak hands; it’s going to be quite a spectacle,” he warned. While several altcoins have already experienced corrections ranging from 20% to 25%, Dogecoin has remained an anomaly in this trend.
Kevin’s analysis heavily relies on a key technical indicator, the Relative Strength Index (RSI), which evaluates the speed and magnitude of price movements. A high RSI reading indicates overbought conditions, suggesting a possible price reversal. “I’m still closely monitoring Dogecoin for a potential sharper drop,” he remarked. “Given historical data and current technicals, a correction seems necessary to ease indicators before any further upward movement.”
Technical Insights and Predictions
Kevin highlighted that Dogecoin’s daily RSI has reached concerning levels. “The daily RSI just tapped 94 again, along with the 0.786 Fibonacci retracement level. This seems to be the likely scenario in the short term,” he explained. “The RSI needs to cool off significantly.”
He anticipates a short-term decline in Dogecoin’s price before a potential resurgence. “I predict Dogecoin will retract to around $0.26–$0.28, then gather momentum to surpass all-time highs,” he stated.
Long-Term Outlook and Caution
While acknowledging that a surge in Bitcoin’s price could temporarily bolster Dogecoin, Kevin remains cautious. “If Bitcoin hits $94K–$95K in the short term, it might propel Dogecoin higher, but I still anticipate a more significant correction before a substantial rally,” he asserted.
Despite short-term concerns, Kevin maintains an optimistic long-term perspective for Dogecoin. “The Dogecoin monthly RSI is currently at 74, indicating a bullish market territory,” he emphasized. “Historically, the monthly RSI peaks in Dogecoin bull markets range from 88 to 98. We still have a long journey ahead.”
Kevin also advised caution against unrealistic price predictions circulated by some influencers. “If a Twitter Crypto Guru claims Dogecoin will reach $28, I urge you to unfollow them. Such claims are pure clickbait and practically impossible,” he warned. “Challenge them on the market cap required at that price level and observe their reaction. They are more interested in using you as exit liquidity than providing genuine advice.”
At the time of writing, Dogecoin is trading at $0.40.
