Dogecoin’s Potential $4 Surge: A Technical Analysis

Following a remarkable 200% rally in early November, Dogecoin (DOGE) has entered a period of consolidation. Crypto analyst Kevin (@Kev_Capital_TA) believes this could signal an upcoming surge, echoing a pattern from a previous market cycle. Could we be looking at a DOGE price reaching $4?

Kevin’s analysis draws parallels to a past DOGE cycle. After an initial price jump, the memecoin consolidated for 24 days before another significant price increase to what he terms the \”macro golden pocket\” – a price range of $3.80 to $4.00, aligning with the 1.618 Fibonacci extension level. If history repeats, Kevin suggests DOGE could skyrocket by the end of the week, potentially setting a new all-time high (ATH) before month’s end.

Critical Support Levels and Bitcoin’s Influence

The current DOGE/USD chart shows DOGE testing a major trend line support on the daily RSI. A break below this support could trigger a price drop. Conversely, a sustained hold could fuel further gains. Kevin emphasizes that a Bitcoin (BTC) price increase is crucial; \”If BTC can leg up, it would save us,\” he notes.

Bitcoin itself has been consolidating after reaching a recent high, trading within a defined range. Kevin observes a \”tug of war\” between price action and downward momentum indicators, with the daily MACD suggesting increased bearish pressure. On the 4-hour BTC/USD chart, a symmetrical triangle pattern is nearing its apex, signaling a potential imminent breakout. Despite recent volatility, significant support levels remain.

The Interplay of Bitcoin and Dogecoin

Kevin highlights significant liquidation levels around $100,000 for BTC, suggesting a potential upward price movement that could positively impact Dogecoin. His analysis underscores the importance of the Bitcoin-Dogecoin price correlation in predicting future market movements. The current interplay between these two cryptocurrencies is a key factor to watch.

At the time of writing, DOGE is trading at $0.4194. This analysis is based on technical indicators and historical patterns and does not constitute financial advice.

Featured image created with DALL-E, chart from TradingView.com