Dogecoin's recent rally has transitioned into a consolidation phase, as noted by crypto analyst Kevin. His analysis points to potential sell signals, specifically a red dot on the weekly DOGE/USDT chart indicating a bearish trend. The signals, including a declining MACD and topped-out Stoch RSI, suggest impending downside risks.
Kevin acknowledges the bullish momentum, emphasized by Dogecoin's highest monthly candle body close yet. However, he remains cautious, highlighting the $0.60 resistance level as crucial for further bullish excitement. He predicts continued strength contingent on Bitcoin's dominance falling below 55%, potentially sparking an altcoin season.
Kevin uses long-term moving averages, namely the Pi Cycle Top Indicator, a traditionally Bitcoin-specific tool, for identifying market peaks in Dogecoin. He plans to sell substantial holdings when these averages cross, having accurately indicated previous cycle tops and bottoms.
Currently, Dogecoin trades at $0.41, while Kevin urges cautious monitoring over the next week for confirmation of the sell signals, keeping an eye on macroeconomic influences affecting the crypto’s trajectory.
