Dogecoin Faces Bearish Pressure with Triple Top Formation
The Dogecoin price is currently showing a bearish pattern on the 4-hour chart, indicating caution for investors. A bullish falling wedge was formed between November 12 and 19, but the expected breakout did not materialize.
On November 19, Dogecoin broke out of this formation, initially raising trader optimism. However, analyst Kevin (@Kev_Capital_TA) predicted a weak breakout, which was confirmed by subsequent price movements.
Where Is Dogecoin Price Heading Next?
Dogecoin faced rejection at a major resistance level, specifically the macro 0.786 Fibonacci retracement level. Kevin stated that until this level is decisively broken, there is little reason for excitement. He noted that Bitcoin (BTC) is also at significant resistance, suggesting Dogecoin's next major movement will likely depend on Bitcoin surpassing the $100,000 mark. He remarked that without this breakthrough, price movements will remain stagnant.
Kevin advised caution, stating that short-term prospects are unexciting as both BTC and Dogecoin face major resistance levels. He emphasized that Dogecoin is trading sideways, awaiting Bitcoin's direction.
Analyzing the 4-hour chart, Kevin identified a "nasty triple top" at the macro 0.786 Fibonacci level for Dogecoin, indicating potential downward pressure. He warned that if a correction to $0.30 occurs, many optimistic investors will need to reconsider their positions.
A triple top is a bearish reversal pattern indicating a possible shift from an uptrend to a downtrend, characterized by repeated failures to break through the same resistance level. Dogecoin's inability to exceed the 0.786 Fib level at $0.41 suggests weakening bullish momentum.
Kevin reiterated that Dogecoin has not genuinely broken out yet: "Until it breaks the macro 0.786 Fib cleanly at $0.41, it’s just trading sideways." He outlined a bullish scenario dependent on surpassing this key resistance, suggesting that if Dogecoin breaks this level, targets of $0.80 to $0.85 could be achievable, contingent on BTC moving higher.
Kevin has been anticipating a deeper correction for Dogecoin, supported by the triple top formation and rejection at the Fibonacci level. He specified his initial price target: maintaining the $0.30 to $0.26 range, which represents a 30-40% correction from the local top, deemed appropriate for a bull market.
From a longer-term perspective, Kevin highlighted the importance of the upcoming monthly candle close, stating that closing above $0.335 within 11 days would set a record for the highest monthly candle close for DOGE.
At press time, DOGE traded at $0.39.
