Dogecoin has become a hot topic of discussion within the cryptocurrency community, with many investors hoping for a dramatic price increase to $3. However, analyst Kevin Capital warns that reality may differ.
In a recent analysis of X, Capital identified a crucial resistance level for Dogecoin, based on the Fibonacci level of 1.618. He estimates that this level could represent Dogecoin's all-time high in this cycle, at $3.90.
While Capital believes that Dogecoin could peak at $3, he argues that a more realistic level would be around $1.80. However, the analyst has identified a positive technical signal, the "Golden Cross," which could drive significant increases from December onwards, provided Bitcoin maintains its current performance.
Some analysts also note the growing interest in other cryptocurrency projects, such as Flockerz before the sale, attracting investor attention with its innovative mechanisms. They also note that this type of cryptocurrency could see sustainable growth in the long term due to active community involvement and rapid acceptance.
What do analysts say about Dogecoin's price?
While Capital takes a more cautious stance, predicting a peak of $1.80 for Dogecoin, analyst Dima James is more optimistic. James argues that if Dogecoin surpasses $0.18 on the weekly chart, it could trigger a explosive price surge, similar to 2016 and 2021.
Analyzing historical patterns, James believes that Dogecoin may be in the early stages of a new growth cycle. He emphasizes the importance of breaking through boundaries on the weekly chart. This is a technical indicator in the past that has foreshadowed significant price increases for Dogecoin. If this pattern is confirmed, James predicts a substantial price increase. It is speculated that the increase could even reach $10, supported by broader adoption and technological advances.
Dogecoin has overcome a major barrier at $0.2192, indicating the potential for a trend reversal. However, it is still too early to declare a long-term upward trend as the coin remains in a downtrend channel on the 4-hour chart.
The cryptocurrency project continues to progress but will need to surpass resistance levels at $0.2437 and $0.2570 to maintain an upward trend. Although the RSI indicates overbought potential, the 50-day moving average at $0.189 provides solid support and limits the risk of significant corrections.
Technical analyses, such as those presented by Capital and James, provide valuable insights into Dogecoin's potential. However, the final outcome will depend on a combination of various factors, including the overall trend of the cryptocurrency market, the adoption of Dogecoin, and technological developments.
