Dogecoin has had an amazing price performance since November 4. Over the past 10 days, Dogecoin has risen a staggering 170% and has not seen a major pullback so far. After reaching its highest level since May 2021 at $0.4385 on Tuesday, Dogecoin is trading just below $0.40 as of this writing.
Buy Dogecoin Now or Wait?
Cryptocurrency analyst Kevin (@Kev_Capital_TA), who has recently gained a lot of attention on X (formerly Twitter) for his analysis of Dogecoin prices, has posted a series of updates answering the question of whether investors should buy Dogecoin now or wait for a potential market correction.
Kevin revealed that he has started to profit from his Dogecoin holdings due to the recent rise in the price of Dogecoin. "I sold 3% of my Dogecoin at $0.39," he said. "This way, I sold a total of 8% of my Dogecoin. I still have 92% of my Dogecoin left."
He outlined a method to systematically profit as prices rise, with specific targets in mind. “My next planned profit zone would be the previous all-time high, and then $1, if we get there. My goal is to sell 25% of the entire bag when the price reaches $1, and then we go from there and just ride the wave.”
Despite the momentum, Kevin warned that an upcoming market correction could have a significant impact on Dogecoin. “The inevitable correction will wipe out many weak investors; it will be unimaginable,” he warned. He observed that while many altcoins have already experienced corrections — some as high as 20-25% — Dogecoin is an exception. “Except for Dogecoin, basically all altcoins are experiencing the correction I predicted,” he noted.
Kevin’s analysis revolves around a key technical indicator, the relative strength index (RSI), which measures the speed and change of price movements. A higher RSI indicates overbought conditions, suggesting a possible price reversal. “Still keeping a close eye on a big drop in Dogecoin,” he commented. “Based on history and the current technical picture, it still strongly favors a correction to cool the indicator before moving higher.”
He noted that Dogecoin’s daily RSI has reached worrying levels. “The daily RSI just hit 94 and the 0.786 FIB [Fibonacci retracement level] again. I think this is a likely scenario in the short term,” Kevin explained. “This RSI needs to cool down significantly.”
Kevin predicts that the price of Dogecoin will fall in the short term, followed by a recovery. “I think Dogecoin will fall back to $0.26-0.28 before rising again and breaking through its all-time high,” he said.
While he acknowledged that a surge in Bitcoin prices could temporarily boost Dogecoin, he remains cautious. “If BTC hits $94,000-95,000 in the short term, it will drag Dogecoin higher, but I still think we’ll experience a bigger correction before moving higher,” Kevin asserted.
Despite the short-term concerns, Kevin remains optimistic about Dogecoin’s long-term prospects. “The monthly RSI for Dogecoin is currently at 74, which is in full bull market territory,” he stressed. “In a Dogecoin bull market, the monthly RSI topped out between 88-98. We still have a long way to go, folks.”
He also warned against listening to unrealistic price predictions spread by certain influencers. “If your Twitter#CryptoGuru tells you that#Dogecoinwill hit $28, I suggest you unfollow them. It’s pure clickbait and almost impossible to achieve,” Kevin warned. “Ask them what the market cap would be at that price level and see how they react. […] They don’t care about you; they want you to be exit liquidity.”
At press time, DOGE is trading at $0.40.