Dogecoin price has been on a spectacular run since November 4. Over the past 10 days, Dogecoin has increased by a staggering 170%, with no major corrections so far. After hitting its highest level since May 2021 at $0.4385 on Tuesday, DOGE price was trading below $0.40 at the time of writing.
Buy Dogecoin Now or Wait?
Cryptocurrency analyst Kevin (@Kev_Capital_TA), who recently gained significant attention on X (formerly Twitter) for his Dogecoin price analysis, posted a series of updates addressing the question of whether investors should buy Dogecoin now or wait for a potential market correction.
Kevin revealed that he has started to take profits from his Dogecoin holdings due to the recent price increase. “I sold another 3% of my Dogecoin bag at $0.39,” he stated. “That means a total of 8% of my entire DOGE bag has been sold. I have 92% of my bag left.”
He outlined a systematic approach to taking profits as prices rise, with specific targets in mind. “My next planned profit zone would be the previous all-time high, then $1 if we hit it. My goal is to sell 25% of the entire bag when we hit $1, then we go from there and play the rally.”
Despite the bullish momentum, Kevin warned of an impending market correction that could have a significant impact on Dogecoin. “The correction that is definitely coming will force a lot of weak hands out of the market; it will be interesting to see,” he warned. He noted that while many altcoins have experienced corrections—some as much as 20-25%—Dogecoin has been an exception. “Basically all altcoins are experiencing the correction I called for other than Dogecoin,” he noted.
Kevin's analysis focuses on a key technical indicator, the Relative Strength Index (RSI), which measures the speed and change of price movements. A high RSI indicates overbought conditions, suggesting a possible price reversal. "Still keeping a close eye on Dogecoin to see if it drops further," he commented. "Based on history and current technicals, it still strongly supports a correction to cool the indicators before moving higher."
He pointed out that Dogecoin's daily RSI has reached alarming levels. “The daily RSI just hit 94 again and the 0.786 FIB [Fibonacci retracement level]. I think that's a likely scenario in the short term,” Kevin explained. “That RSI needs to cool off a lot.”
Kevin predicts that Dogecoin will drop in the short term before recovering. “I think Dogecoin will retrace to $0.26–$0.28 and then reload to go back up and break the ATH [all-time high],” he stated.
While acknowledging that the surge in Bitcoin prices could temporarily boost Dogecoin, he remains cautious. “If BTC hits $94,000–$95,000 in the short term, it will pull DOGE higher, but I still think we will have a larger correction before moving higher,” Kevin asserted.
Despite the short-term concerns, Kevin remains bullish on Dogecoin in the long term. “Dogecoin’s monthly RSI is currently at 74, which is a full bull market,” he noted. “The monthly RSI peaks in a DOGE bull market at anywhere from 88–98. We have a long way to go, folks.”
He also warned against unrealistic price predictions made by some influencers. “If your#CryptoGuruon Twitter tells you that#Dogecoinis going to $28, I recommend you unfollow them. It’s a complete clickbait and almost impossible,” Kevin warned. “Ask them what their market cap will be at that price and see how they react. […] They don’t care about you; they want you to be the exit liquidity.”
At press time, DOGE was trading at $0.40.
The post Buy Dogecoin Now or Wait? Analyst Points to Key Technical Indicator appeared first on Crypto Breaking News.
