Cryptocurrency analyst Kevin (@Kev_Capital_TA) predicts that Dogecoin's price will surge significantly, expecting it to reach between $1 to $2 by the end of December or early January. This optimistic prediction comes amid skepticism about the recent breakout pattern of the memecoin.
Was the last drop in Dogecoin price before reaching $1?
In the past week, from November 12 to 19, Dogecoin formed a descending wedge in lower time frames, which is generally considered bullish. On November 19, the crypto asset broke out of this pattern, sparking some traders' optimism. However, Kevin remains unconvinced about the strength of this trend.
He expressed through X: "This strange little breakout of Dogecoin seems very weak to me." "Tracking fund flows in a shorter time frame, smart investors are also skeptical. If fund flow remains stagnant, my fundamental prediction is that the likelihood of further adjustment/consolidation is higher. By the way, if we go up directly from here, that would be more bullish."
When an X user asked if Dogecoin would exceed $0.40 by mid-December, Kevin confidently replied, "I believe Dogecoin's price will reach $1 to $2 by the end of December or early January."
Despite Kevin's optimistic view on the long-term outlook, he still expects Dogecoin's price to continue to pull back in the short term. He warned: "If this happens, many people will go bankrupt."
He elaborated on his price target: "My first price target and the level we hope Dogecoin will maintain is in the range of 0.30 to 0.26 cents, which is the golden pocket retracement level. This is a correction of 30-40% from the local top, and in a bull market, this is a perfect scale correction."
In the long run, Kevin expects price levels to be higher. In an analysis using the Pi Cycle top indicator (a tool traditionally applied to Bitcoin), cryptocurrency analyst Kevin recently clarified Dogecoin's long-term potential market trajectory. This indicator is crucial for determining cycle highs and lows, relying on the crossover of two specific moving averages to signal significant market changes.
The short-term moving average (MA) typically considers price data from the past 111 days. The long-term moving average takes the average of the past 350 days but multiplied by 2. The principle of this indicator is based on the theory that when these two moving averages cross, a potential peak in market price is imminent, indicating a sell-off point before an economic downturn. It has historically been used in Bitcoin analysis, but as Kevin demonstrated, it can also be effectively applied to Dogecoin.
Kevin's chart covers several years of Dogecoin price trends, clearly marking the accurate past cycle highs and lows of the Pi cycle indicator. The past cycle highs during January 2018 and May 2021 are circled in the chart, coinciding with the crossover points of the two MAs and the corresponding price peaks.
The current price trend shows a clear upward trajectory, although the two moving averages are converging, they have not yet crossed. The chart shows that the 1.618 Fibonacci extension level is around $4.00.
Kevin wrote: "One of the secret indicators I devised for Dogecoin, traditionally only applicable to #BTC, is the Pi Cycle tops indicator. It accurately predicts Dogecoin's tops and bottoms in each cycle. When the two moving averages cross and the monthly RSI reaches a certain level, I plan to withdraw a large amount of funds from the market. As you can see, although the moving averages are now moving in the same direction towards the eventual crossover, we are still quite far from the crossover, indicating that we have a long way to go."
As of the time of writing, DOGE is trading at $0.38.
