After staging a major bullish rally, Dogecoin's price is currently in a consolidation phase. And this is also reflected in the technical indicators. Cryptocurrency analyst Kevin (@Kev_Capital_TA) is warning about a potential sell signal. In his latest update on X, Kevin shared the weekly DOGE/USDT chart and outlined the technical signs that traders should closely monitor.
Dogecoin Price Analysis
Kevin emphasizes that Dogecoin is “printing sell signals on the weekly timeframe with a red dot appearing,” warning that this signal needs to be confirmed in the coming week to solidify its validity. He identifies the convergence of three strong technical indicators, including a declining Moving Average Convergence Divergence (MACD) and a Stochastic Relative Strength Index (Stoch RSI) that has “topped waiting for a bear cross.”
These indicators collectively suggest a potential bearish scenario may be approaching. However, Kevin balanced this with the remark that "price action still seems bullish and the money flow is also bullish," indicating that these factors currently outweigh the bearish signals.
Despite long-term sell signals, Kevin still leaves open the possibility of continued bullish momentum in the short term. He notes that Dogecoin has "closed the highest monthly candle ever," marking a significant milestone while acknowledging that "the downtrend remains a risk."
Looking ahead, Kevin points out the importance of a key resistance level, stating, "Until we clearly break the 0.60 cent threshold, there is nothing to get excited about," referring to his weekly chart that includes Fibonacci extension levels up to $1.
Furthermore, Kevin is closely examining the macroeconomic factors that could impact Dogecoin's performance. He points out that an "altcoin season" could act as a catalyst for DOGE's continued strength, depending on whether Bitcoin dominance falls below 55%. "If BTC Dominance clearly breaks below 55%, you’ll have your #ALTSEASON, folks," he explains.
Additionally, Kevin shared his strategy regarding long-term moving averages, stating, "When these two long-term moving averages cross on Dogecoin, I will sell a large portion of my bag. They have successfully called the top on DOGE multiple times. They are rising fast!"
Notably, the cryptocurrency analyst is referring to the Pi Cycle Top Indicator for Dogecoin, a tool often used for Bitcoin (BTC). This indicator is based on the intersection of two moving averages—the 111-day moving average and the 350-day moving average doubled—to signal potential market tops.
Last week, Kevin revealed, "One of my secret indicators for Dogecoin, which is traditionally thought to only work with BTC, is the Pi Cycle Top Indicator. This indicator has accurately predicted every top and bottom of the DOGE cycle in each of its cycles. When the two moving averages cross along with the monthly RSI at a certain level, that’s when I plan to withdraw a significant portion from the market."
At the time of the press release, DOGE was trading at $0.41.
