After a massive rebound, Dogecoin's price is currently in a consolidation phase. This is also reflected in the technical indicators. Cryptocurrency analyst Kevin (@Kev_Capital_TA) warned of potential sell-off indicators. In the latest update on X, Kevin shared the weekly DOGE/USDT chart and outlined the technical signals traders should closely monitor.
Dogecoin Price Analysis
Kevin emphasized that Dogecoin 'shows a sell signal with a red dot on the weekly chart' and warned that this signal needs to be confirmed next week to solidify its validity. He identified the convergence of three strong technical indicators, including the declining Moving Average Convergence Divergence (MACD) and the Stochastic Relative Strength Index (Stoch RSI) that is 'peaking while waiting for a bear market crossover.'
These indicators collectively suggest that a potential downtrend may be imminent. However, Kevin balanced this by observing that 'the price action remains bullish, and the money flow is also bullish,' indicating that these factors currently outweigh the bearish signals.
Despite the long-term sell signal, Kevin remains open to the possibility of continued bullish momentum in the short term. He pointed out that Dogecoin 'closed at the highest monthly candle close in history,' marking an important milestone, while acknowledging that 'downside risks still exist.'
Looking ahead, Kevin noted the importance of key resistance levels, stating, 'There's nothing to get excited about unless we break through 0.60 cents decisively,' referencing the weekly chart that includes Fibonacci price levels extending to $1.
Additionally, Kevin is closely monitoring macroeconomic factors that could impact Dogecoin's performance. He mentioned that 'altcoin season' could act as a catalyst for Dogecoin to continue its strength, provided that Bitcoin's dominance falls below 55%. 'If BTC dominance decisively drops below 55%, you can expect #ALTSEASON,' he explained.
In addition, Kevin shared his long-term moving average strategy, stating: 'I will sell most of my stocks when these two long-term moving averages cross on Dogecoin. They have successfully touched the top of Dogecoin multiple times. They rise quickly!'
Notably, this cryptocurrency analyst refers to Dogecoin's Pi Cycle Top indicator, which is traditionally used for Bitcoin (BTC). This indicator relies on the crossover of two moving averages (111-day and 350-day moving average multiplied by two) to signal potential market peaks.
Last week, Kevin revealed: 'One of the secret indicators I developed for Dogecoin, traditionally applicable only to BTC, is the Pi Cycle Top indicator. It accurately predicts the tops and bottoms of Dogecoin each cycle. When the two moving averages cross and the monthly RSI reaches a certain level, I plan to withdraw a significant amount of funds from the market.'
As of the time of writing, DOGE is trading at $0.41.
