Cryptocurrency analyst Kevin (@Kev_Capital_TA) is predicting that Dogecoin will rise sharply, forecasting a price range of $1 to $2 by the end of December or early January. This bullish forecast comes amid skepticism about the current breakout patterns observed in memecoins.
The last dip for Dogecoin before $1?
In the past week, from November 12 to November 19, Dogecoin formed a descending wedge pattern—a pattern often considered bullish—on lower time frames. On November 19, the cryptocurrency asset broke out of this pattern, driving some optimism among traders. However, Kevin still does not believe in the strength of this move.
“To me, this strange little breakout on Dogecoin of this suspicious bullish flag looks very weak,” he stated via X. “Watching the money flow on smaller time frames and smart investors are also unconvinced. If the money flow remains stagnant, then my baseline case for the next correction/consolidation is more likely to occur. By the way, this would be more optimistic if we just went straight from here.”
When asked by a user if Dogecoin would surpass $0.40 by mid-December, Kevin confidently replied: "I think we will reach $1-2 by the end of December or early January".
Despite the long-term bullish outlook, Kevin still expects the price of Dogecoin to continue adjusting in the short term. He warns that "a lot of people will be wiped out if this happens."
He further explains his price target: “My first price target and the level we want to hold for Dogecoin is the range of $0.30-$0.26 cents, which is the golden pocket retracement level. This is a 30-40% retracement from the local peak, which is a perfect adjustment level in a bullish market.”
In the long run, Kevin predicts that the price will be much higher. In an analysis leveraging the Pi Cycle Top Indicator—a tool often applied to Bitcoin—the cryptocurrency analyst Kevin recently shed light on Dogecoin's potential long-term market trajectory. This indicator, crucial for identifying cycle highs and lows, relies on the crossover of two specific moving averages to signal significant market changes.
The short-term moving average (MA) typically looks at the last 111 days of price data. The long-term MA averages the last 350 days but doubles it. The principle behind the indicator is based on the theory that when these two MAs cross, the market price will reach a potential peak, indicating a sell-off point before a downturn. Traditionally, it has been used in Bitcoin analysis but, as Kevin demonstrates, it can also be effectively applied to Dogecoin.
Kevin's chart includes several years of Dogecoin price movements, clearly marking the highs and lows in previous cycles that the Pi Cycle Indicator has accurately predicted. The highs in the previous cycle are circled in the chart for January 2018 and May 2021, coinciding with the crossover of the two MAs and the respective price peaks.
The current price volatility shows a significant upward trajectory and while the two MAs are converging, they have not yet crossed. The chart draws the Fibonacci extension level of 1.618 at around $4.00.
Kevin writes: “One of my secret indicators for Dogecoin that is traditionally thought to only apply to #BTC is the Pi Cycle Top indicator. This indicator has accurately predicted every peak and trough of the DOGE cycle in each of its cycles. When two moving averages cross along with the monthly RSI at a certain level, that’s when I plan to pull a significant portion out of the market. As you can see, although the moving averages are currently heading in the same direction to eventually cross, we are still not close to the crossing point, indicating we have a lot to do before.”
At the time of the press report, DOGE was trading at $0.38.