Dogecoin Price Is Flashing Its First Sell Signal Since This Bull Run Began, Analyst Reveals What To Watch Out For

by

As a seasoned researcher and analyst with a knack for deciphering the complexities of the crypto market, I find myself both intrigued and cautious about the recent developments in Dogecoin (DOGE). The flashing sell signal on the weekly time frame, coupled with bearish indicators like decreasing momentum and topped-out Stochastic RSI, is certainly a cause for concern. However, it’s important to remember that the crypto market can be as unpredictable as a rollercoaster ride at an amusement park, so I’m not ready to jump onto the bear bandwagon just yet.

crypto expert Kevin Capital has issued a cautionary note on potential bear trends in Dogecoin‘s value. According to his analysis, Dogecoin displayed its initial sell warning since the price surge started, and he outlined crucial points to keep an eye on as a result of this shift.

Dogecoin Price Flashes Sell Signal

In a recent post, Kevin Capital pointed out an important observation about Dogecoin – the current price trend is indicating a potential sell signal on the weekly chart. However, it’s crucial to note that this isn’t definitive yet; for this bearish prediction to hold true, Dogecoin must show the same sell signal in its upcoming weekly update.

Kevin Capital emphasized additional factors pointing towards a possible drop in Dogecoin’s price. He pointed out that the Moving Average Convergence/Divergence (MACD) suggests a decrease in upward momentum. Furthermore, the Stochastic RSI has peaked and is now waiting for a bearish crossover. In accordance with these signs, the analyst suggested that three robust indicators are currently aligning, suggesting a potential downturn may be on the horizon.

According to Kevin Capital, the trend for Dogecoin remains optimistic, with both the price action and money flow indicator pointing upward. He typically places more weight on these positive signals than negative ones in any market. However, he cautions that we should also take note of bearish indicators as they serve as a reminder. In his opinion, it’s crucial to maintain a balanced perspective rather than being strictly bullish or bearish all the time – staying level-headed is key.

Currently, the price of Dogecoin is stabilizing near $0.4 and recorded its best monthly close for this year in November, marking a significant increase of 161%. Consequently, Dogecoin, which faced challenges earlier in the year, has now grown more than 385% since the start of this year (YTD).

A More Bullish Perspective For The Meme Coin

Crypto experts such as Trader Tardigrade have given a more optimistic view on Dogecoin’s price. In a recent post, this crypto analyst pointed out that Dogecoin’s daily candle has closed with a breakout pattern emerging from a bullish pennant formation. He further stated that DOGE has surpassed the resistance level to break free from the pattern and initiate a new rise towards the $1.3 target price.

According to financial analyst Rekt Capital, he pointed out an upward trending structure known as an “ascending triangle” in Dogecoin’s price action, which subsequently broke above its upper boundary at approximately $0.43. His accompanying graph suggests that following the breakout from this ascending triangle, Dogecoin could potentially rise to around $0.56 in the future.

 

According to the cryptocurrency expert known as The Cryptomist, she anticipates a more optimistic outlook due to the bullish ascending triangle formation. She believes that the value of Dogecoin could reach approximately $0.70 in the coming week, which is close to its current record high (peak) of $0.73.

Currently as I speak, the value of Dogecoin stands approximately at $0.43, marking a nearly 2% increase over the past 24 hours, based on information from CoinMarketCap.

Read More

2024-12-02 16:41