Analyst Projects Dogecoin Price Surge to $1-$2 by Early January
Crypto analyst Kevin (@Kev_Capital_TA) projects a potential rise in Dogecoin's price to between $1 and $2 by the end of December or early January. This forecast occurs amidst skepticism regarding current breakout patterns in the memecoin.
One Last Dip For Dogecoin Price Before $1?
From November 12 to 19, Dogecoin formed a falling wedge, a bullish pattern on lower timeframes. On November 19, it broke out of this formation, raising some optimism among traders. However, Kevin questions the strength of this breakout.
Kevin stated via X: “This weird little breakout on Dogecoin of this suspect bull flag looks very weak to me. Tracking the money flow on smaller time frames shows smart investors are not convinced either. If money flow remains stagnant, then my base case of further correction/consolidation becomes more likely.”
In response to an inquiry about Dogecoin surpassing $0.40 by mid-December, Kevin expressed confidence: “I think we’re at $1-$2 by end of December beginning of January.” Despite his long-term optimism, he anticipates short-term corrections, warning that “a lot of people will be wiped out if this occurs.”
Kevin's first price target for Dogecoin is the $0.30-$0.26 range, identified as golden pocket retrace levels, representing a 30-40% correction from the local top, which is typical in a bull market.
For long-term prospects, Kevin utilizes the Pi Cycle Tops Indicator, traditionally used for Bitcoin, to analyze Dogecoin’s potential trajectory. This indicator identifies market peaks and troughs based on the crossing of two specific moving averages.
The shorter-term moving average (MA) considers the last 111 days, while the longer-term MA averages the last 350 days but is multiplied by two. The principle relies on the idea that when these MAs cross, a peak in market price may occur, suggesting a sell-off point before a downturn. Kevin illustrates its application to Dogecoin effectively.
Kevin's chart tracks several years of Dogecoin price action, marking past cycle highs and lows where the Pi Cycle Indicator has been accurate. Notable peaks occurred in January 2018 and May 2021, coinciding with MA crossover events.
The current price movement indicates an upward trend; however, the two MAs have yet to cross. A 1.618 Fibonacci extension level is plotted at around $4.00.
Kevin notes: “One of my secret indicators for Dogecoin that is traditionally only supposed to work for #BTC is the Pi Cycle tops indicator. It has accurately called every DOGE cycle top and bottom. When the two moving averages cross along with Monthly RSI being at a certain level, that’s when I plan on taking significant portions out of the market. While the moving averages are heading in the same direction to eventually cross, we’re still not very close to crossing, indicating we have a lot higher to go first.”
At press time, DOGE traded at $0.38.
