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Dogecoin price has had an exciting performance since November 4th. In the past 10 days, Dogecoin has risen by a staggering 170%, without any major correction yet. After hitting its highest level since May 2021 at $0.4385 on Tuesday, DOGE was trading at just under $0.40 at the time of writing.
Buy Dogecoin now or wait?
Cryptocurrency analyst Kevin (@Kev_Capital_TA), who recently gained significant attention on X (formerly Twitter) for his analysis of Dogecoin price, posted a comment series One of the updates addresses the question of 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 the recent price rise. “I sold an additional 3% of my Dogecoin bag at $0.39,” he said. “This means a total of 8% of my entire DOGE bag has been sold. I have 92% of my bag remaining.”
He outlined a systematic approach to taking profits as prices rise, with specific goals in mind. “The next take profit zone I have planned will be the previous all-time highs, then $1 if we get there. My goal is to sell 25% of the entire bag by the time we get to $1, and then we go from there and play it as is.”
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Despite the bullish momentum, Kevin warns of an impending market correction that could impact Dogecoin significantly. “The coming correction will inevitably dissolve many weak hands; He warned that it would be difficult to see. He noted that while many altcoins have already undergone corrections – some as much as 20-25% – Dogecoin has been an exception. “Basically all altcoins are getting the correction I called for along with Dogecoin,” he noted.
Kevin’s analysis focuses on a key technical indicator, the Relative Strength Index (RSI), which measures the speed and variability of price movements. A rising RSI indicates overbought conditions, indicating a potential price reversal. “We continue to closely monitor Dogecoin in anticipation of a sharp decline,” he commented. “Based on history and current technicals, it remains highly supportive of a correction to calm indicators before heading higher.”
He noted that Dogecoin’s daily RSI has reached alarming levels. “The daily RSI has reached 94 again and 0.786 FIB (Fibonacci retracement level). “I think this is the likely scenario in the short term,” Kevin explained. “This RSI needs to cool down badly.”
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Kevin expects a decline in the price of Dogecoin in the short term before its resurgence. “I think Dogecoin will go back to $0.26-$0.28 and then reload to come back and break the ATHs (all-time highs),” he said.
While he admits that a rise in Bitcoin’s price could temporarily boost Dogecoin, he remains cautious. “If Bitcoin gets to $94k-$95k in the short term, that will pull DOGE higher, but I still think we will get a bigger correction before heading higher,” Kevin asserted.
Despite short-term concerns, Kevin maintains a positive long-term outlook for Dogecoin. “Dogecoin’s monthly RSI is currently at 74, which is full-blown bull market territory,” he noted. “The monthly RSI tops DOGE bull markets anywhere from 88 to 98. We have a long way to go, people.”
He also warned against unrealistic price expectations promoted by some influencers. “If a #Crypto expert on Twitter tells you that #Dogecoin will hit $28, I urge you to unfollow him. “It’s just clickbait, and it’s virtually impossible,” Kevin warned. “Ask them what the market cap is at that price level.” And see how they will react. (…) They don’t care about you; They want you as liquidity to exit.
At press time, DOGE was trading at $0.40.
Featured image created with DALL.E, a chart from TradingView.com
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