Dogecoin Consolidates After 200% Rally, Analysts Predict Potential Surge
After a rally exceeding 200% in early November, Dogecoin (DOGE) has entered a consolidation phase. Analyst Kevin (@Kev_Capital_TA) suggests this may precede another surge, akin to previous market cycles.
Is Dogecoin Heading Towards $4?
Kevin points out that during Dogecoin's last cycle, the asset consolidated for 24 days following its initial rally before rising to what he terms the "macro golden pocket," a price range between $3.80 and $4.00 aligning with the 1.618 Fibonacci extension level. He anticipates that if DOGE follows a similar trajectory, prices could rise significantly by week’s end, possibly reaching a new all-time high (ATH) by month-end.
“In Dogecoin's previous cycle, after the first major leg up, it consolidated for 24 days before moving towards the macro golden pocket at $3.80-$4.00,” Kevin states.
He notes predicting such performance is challenging: “That would be astronomical performance though and it’s hard to make that type of call. Let's aim for a new ATH by the end of the month.”
Kevin emphasizes the importance of DOGE's current price position. Analyzing the daily DOGE/USD chart, he indicates DOGE is "actively testing this major trend line of support on the daily RSI." A breach could "accelerate downside," while bulls aim to maintain support.
Although the RSI trend line held, he asserts it "needs to bounce now if we are going to hold it." Bitcoin's (BTC) price movements are crucial: “If BTC can leg up, it would save us,” he adds.
Bitcoin has been consolidating since reaching an ATH of $99,588 on November 22, trading within a range of $90,800 to $98,500. Kevin describes a "tug of war" between price action and downward momentum on indicators, noting that "one of them is going to win eventually."
On the 4-hour BTC/USD chart, Kevin identifies a symmetrical triangle pattern nearing its apex, indicating a potential breakout. Despite volatility, "BTC still has not broken down or even closed a 4HR candle below this trend line," suggesting strong support levels.
He also mentions significant liquidation levels around $100,000, stating, "it's only a matter of time before BTC decides to come up and take that liquidity at $100K."
A move by Bitcoin could signal the next major price surge for Dogecoin, reflecting patterns from the last cycle. Kevin's analysis underscores the interplay between Bitcoin and Dogecoin prices as critical for forecasting market movements.
At press time, DOGE traded at $0.4194.
