Dogecoin is showing a bearish chart pattern, specifically a 'nasty triple top,' on the 4-hour timeframe, implying caution for investors. The memecoin has been unable to surpass the macro 0.786 Fibonacci retracement level, leading to a possible downward trend.
Analyst Kevin suggests that Dogecoin's future movements are tied to Bitcoin, especially awaiting Bitcoin to clear major resistance levels. Until then, he advises traders to manage their excitement as Dogecoin trades sideways for now.
Kevin emphasizes the importance of Bitcoin's performance, indicating that Dogecoin's prices will likely align with Bitcoin's if it breaks key barriers. The current pattern suggests weakening bullish momentum for Dogecoin, with a potential correction target of $0.30 to $0.26.
Despite caution, Kevin notes an opportunity for a bullish scenario if Dogecoin breaks its current resistance, potentially reaching $0.80 to $0.85. However, a lot of work is still needed, especially on Bitcoin's price movement side.
