It looks Dogecoin entered a consolidation phase after a massive rally, and crypto analyst Kevin is raising some eyebrows with his warning about a potential sell signal.
What’s happening with Dogecoin?
Kevin pointed out that Dogecoin is currently printing a sell signal on the weekly chart, but he’s quick to note that this signal needs confirmation over the next week to really solidify its validity.
He identified few key technical indicators that are converging, a declining MACD and a Stochastic RSI that has peaked and is now waiting for a bearish crossover.
While these indicators indeed suggest a potential downturn, Kevin also mentioned that the price action still looks bullish, and money flow remains positive.
This means, for now, the good vibes might still outweigh the bad signals.
Support, resistance, and key levels
Kevin isn’t completely ruling out further bullish momentum in the short term, and noted that Dogecoin has just closed its highest monthly candle ever, which is an important milestone.
But worth to remember that until Dogecoin breaks cleanly above $0.60, there’s not much to get too excited about.
Kevin is also looking at macroeconomic factors that could impact Dogecoin’s performance. He believes an upcoming altcoin season could be the catalyst for DOGE’s continued strength, especially if Bitcoin’s dominance dips below 55%.
“If BTC Dominance breaks the 55% level cleanly, you will get your #ALTSEASON folks.”
The Pi Cycle Top Indicator never miss?
Kevin shared his strategy regarding long-term moving averages, stating he plans to sell a chunk of his holdings when these averages cross on Dogecoin.
He refers to the Pi Cycle Top Indicator, which has accurately predicted Dogecoin’s price peaks in previous cycles.
This indicator relies on two moving averages, the 111-day and the 350-day multiplied by two, to signal potential market peaks.
“One of my secret indicators for Dogecoin is the Pi Cycle tops indicator. It has accurately called every DOGE cycle top and bottom.”
