Dogecoin Price Corrects 19% After Nearly 200% Rally to $0.4385
Dogecoin (DOGE) has experienced a significant rally, surging nearly 200% over eight days to reach a local peak of $0.4385. This growth raised the daily Relative Strength Index (RSI) to almost 93, indicating overbought conditions.
Following this peak, Dogecoin's price corrected by 19%, currently trading at $0.37. Analyst Kevin (@Kev_Capital_TA) suggests that the correction phase may continue. He provides insights on potential price movements for Dogecoin in a series of updates.
How Low Can Dogecoin Go?
Kevin identifies the $0.30-$0.26 range as a crucial support level and "golden pocket retrace levels," representing a 30-40% correction from the recent top. He notes that such corrections are typical in bull markets.
He emphasizes that a healthy correction lasting 1-3 weeks would help cool off indicators. Kevin draws comparisons to previous market behavior, stating that Dogecoin's RSI hit 90+ three times during the 2020-2021 bull market, each time marking a local top or consolidation before further upward movement.
The current price action shows Dogecoin forming a symmetrical triangle, a pattern often preceding significant price changes. Kevin indicates uncertainty about the direction of the breakout but leans towards a correction due to the high RSI.
The breakdown from the triangle could lead to a price target around $0.28, aligning with his earlier analysis. Kevin confirms that the expected correction is starting, asserting that dips can reset indicators for future growth.
Currently, Dogecoin trades at approximately $0.37 after a 19% retracement, finding temporary support at $0.35. However, with the daily RSI at 80—still in overbought territory—a continuation of the correction remains possible.
Kevin reiterates the need for a 1-3 week correction to benefit Dogecoin, citing similar patterns from the 2020-2021 period.