Buy Dogecoin Now Or Wait? Analyst Points To Key Technical Indicator
The Dogecoin price has put in a sensational performance since November 4th. In the past 10 days, Dogecoin has risen by an incredible 170%, with no major correction to date. After reaching its highest level since May 2021 at $0.4385 on Tuesday, the DOGE price was trading at just under $0.40 at the time of writing.
Buy Dogecoin Now Or Wait?
Crypto analyst Kevin (@Kev_Capital_TA), who recently gained significant attention on X (formerly Twitter) for his Dogecoin price analysis, has posted a series of updates addressing the question on whether investors should buy Dogecoin now or wait for a potential market correction.
Kevin revealed that he has started taking profits from his Dogecoin holdings due to recent price appreciations. I sold an additional 3% of my Dogecoin bag at $0.39, he stated. That makes for a total of 8% of my entire DOGE bag sold. I have 92% of my bag remaining.
He outlined a systematic approach to profit-taking as the price climbs, with specific targets in mind. My next planned take profit area will be previous all-time highs, then $1 if we get there. My goal is to have 25% of entire bag sold by the time we get to $1, then we ride from there and play it as it goes.
Despite the bullish momentum, Kevin warns of an impending market correction that could impact Dogecoin significantly. The correction that is inevitably coming is going to melt so many weak hands away; its gonna be wild to see, he cautioned. He observed that while many altcoins have already undergone correctionssome by as much as 20-25%Dogecoin has been an exception. Basically all altcoins are getting the correction I called for besides Dogecoin, he noted.
Kevins analysis centers 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 potential price reversal. Still keeping a close eye on Dogecoin for a sharper drop, he commented. Based off history and the current technicals, it still heavily supports a correction to cool off indicators before heading higher.
He pointed out that Dogecoins daily RSI has reached alarming levels. Daily RSI just tapped 94 again and the 0.786 FIB [Fibonacci retracement level]. I think this is the likely scenario in the short term, Kevin explained. That RSI needs to cool off badly.
Kevin predicts a short-term price decline for Dogecoin before a resurgence. I think Dogecoin will go back to $0.26$0.28 and then reload to come back up and break ATHs [all-time highs], he stated.
While acknowledging that a surge in Bitcoins price could temporarily boost Dogecoin, he remains cautious. If BTC taps $94K$95K in the short term, it will drag DOGE higher, but I still think we get a bigger correction before heading higher, Kevin asserted.
Despite short-term concerns, Kevin maintains a positive long-term outlook for Dogecoin. The Dogecoin monthly RSI is currently at 74, which is full bull market territory, he highlighted. The Monthly RSI tops out in DOGE bull markets anywhere from 8898. We got a long way to go, folks.
He also cautioned against unrealistic price predictions propagated by some influencers. If your Twitter #Crypto Guru is telling you #Dogecoin is going to $28, I urge you to unfollow them. Its pure clickbait and is literally close to impossible, Kevin warned. Ask them what the market cap would be at that price level and see how they react. [] They dont care about you; they want you as exit liquidity.
At press time, DOGE traded at $0.40.
Read more: https://www.newsbtc.com/news/dogecoin/buy-dogecoin-now-or-wait/
Text source: NewsBTC
