With the rising interest in cryptocurrency, Dogecoin has frequently been a topic of discussion. Crypto analyst Kevin (@Kev_Capital_TA) has recently made headlines by predicting a significant surge in Dogecoin’s price, with expectations that it will soar between $1 and $2 by the end of December or early January. This optimistic forecast comes amidst ongoing skepticism regarding the current breakout patterns observed in the memecoin.
Potential Final Dip for Dogecoin Price Before Reaching $1?
In the week spanning from November 12 to 19, Dogecoin formed a falling wedge on the lower timeframes, a pattern often seen as bullish. On November 19, the crypto asset broke out of this formation, sparking some optimism among traders. However, Kevin expressed doubts about the strength of this breakout.
He remarked, “This unusual breakout pattern in Dogecoin, resembling a weak bull flag, doesn’t convince me of its strength,” through social media platform X. “Analyzing the money flow on smaller time frames, it appears that even seasoned investors are not convinced. If the money flow remains stagnant, my base case of further correction or consolidation becomes more likely. Interestingly, such a correction could be more bullish if we eventually head straight up.”
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When questioned by an X user about Dogecoin’s potential to surpass $0.40 by mid-December, Kevin responded confidently, “I believe we’ll see the price between $1-$2 by the end of December or the start of January.”
Despite his bullish long-term outlook, Kevin anticipates a continued short-term correction for Dogecoin. He cautioned that “many traders might face significant losses if this correction occurs.”
Long-Term Price Targets and Market Analysis
Kevin elaborated on his price targets, explaining, “Our first price target and a crucial level to maintain for Dogecoin is the $0.30-$0.26 range, which corresponds to the golden pocket retrace levels. This represents a 30-40% correction from the local top, which is an ideal correction size in a bull market scenario.”
Over the long term, Kevin envisions much higher price levels for Dogecoin. In his analysis using the Pi Cycle Tops Indicator—a tool traditionally used for Bitcoin—he highlighted Dogecoin’s long-term potential market trajectory. This indicator, essential for identifying cycle highs and lows, is based on the intersection of two specific moving averages and signals significant market shifts.
Applying the Pi Cycle Tops Indicator to Dogecoin
The Pi Cycle Tops Indicator utilizes a shorter-term moving average (MA) that considers the last 111 days of price data and a longer-term MA that averages the last 350 days, multiplied by two. The core principle of this indicator is that when these two MAs intersect, a potential market peak is suggested, indicating a likely sell-off point before a downturn. Although historically applied to Bitcoin, Kevin successfully demonstrates its applicability to Dogecoin.
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Kevin’s comprehensive chart spans several years of Dogecoin price action, distinctly marking past cycle highs and lows where the Pi Cycle Indicator has been accurate. Notably, past cycle highs occurred in January 2018 and May 2021, coinciding with the crossover of the two MAs and corresponding price peaks.
The current price movement shows a significant upward trajectory, though the two MAs have yet to cross. The chart indicates a 1.618 Fibonacci extension level at approximately $4.00.
Kevin writes, “One of my secret indicators for Dogecoin, traditionally used for #BTC, is the Pi Cycle Tops Indicator. It has consistently pinpointed every DOGE cycle top and bottom over its cycles. When the two moving averages cross, along with the Monthly RSI reaching a certain level, I plan to exit significant portions of the market. As noted, while the moving averages are now moving in the same direction to eventually cross, we’re still not quite there yet, indicating we have much higher to go first.”
As of the last update, Dogecoin traded at $0.38, showcasing a promising yet cautious outlook.
