Dogecoin Price Faces Potential Downturn: Analyst Issues Caution on Sell Signal
After a significant rally, Dogecoin (DOGE) is now in a consolidation phase, according to crypto analyst Kevin (@Kev_Capital_TA), who warns of a potential sell signal. In his latest update on X, Kevin shared a weekly DOGE/USDT chart, highlighting key technical indicators that traders should monitor closely.
Technical Analysis and Sell Signal
Kevin pointed out that Dogecoin is currently “printing a sell signal” on the weekly timeframe, with a red dot appearing on the chart. This signal, he noted, requires confirmation over the next week to validate its accuracy. He also flagged a combination of three strong bearish indicators: a declining Moving Average Convergence Divergence (MACD), a Stochastic Relative Strength Index (Stoch RSI) that has “topped out,” and the impending risk of a bear cross.
Despite these bearish signals, Kevin emphasized that price action remains bullish for now, with positive money flow continuing to support the uptrend. He acknowledged that while the long-term outlook is showing warning signs, Dogecoin’s strong performance in the short term still holds potential.
Key Resistance and Long-Term Outlook
Looking ahead, Kevin highlighted that Dogecoin’s next critical resistance level sits at $0.60. Until this level is broken decisively, he advises caution and suggests that there’s little to be excited about in terms of upward momentum. He also pointed out the significance of Dogecoin’s highest-ever monthly candle body close, indicating a milestone in its price action.
Altcoin Season and Macroeconomic Factors
Kevin also noted that broader market conditions, such as a potential “altcoin season,” could influence Dogecoin’s performance. He suggested that a decline in Bitcoin’s dominance below 55% could trigger increased altcoin activity, benefiting DOGE.
Pi Cycle Indicator and Strategy
In his analysis, Kevin referred to the Pi Cycle Top Indicator, a tool traditionally used for Bitcoin, which has successfully predicted past DOGE market peaks. He noted that when the 111-day and 350-day moving averages cross, it signals a potential market top for Dogecoin. Kevin shared that he plans to sell a significant portion of his DOGE holdings if this indicator triggers, as it has accurately signaled every major cycle top for Dogecoin in the past.
As of the latest update, DOGE is trading at $0.41, with the market remaining in a delicate balance between bullish and bearish signals. Traders are advised to stay vigilant and monitor these critical technical indicators in the coming weeks.
