Dogecoin Teeters Between ‘Price Discovery’ And ‘Catastrophe’: What’s Next?
2024-12-30
Category: None

The Dogecoin price is currently down -34% from its December 8 high at $0.4843. But according to crypto analyst Kevin (@Kev_Capital_TA), DOGE has one of “the better looking” charts at the moment. In a new Broadcast on X, he offered an in-depth look at Dogecoin, the broader market environment, and key technical indicators.
Dogecoin: Price Discovery Or Catastrophe?
Despite the current retracement, Kevin believes Dogecoin’s chart “looks really nice at the moment” and appears stronger than many other cryptocurrencies: “This is a stronger coin compared to a lot of the market. I mean, Doge really does look good here. […] Can it not look good in a week from now? Of course it can, but it looks really good at the moment.”
However, he emphasized the possibility of short-term pullbacks—something that could bring Dogecoin down to the $.026 region: “In the short term, could we come back down and test 26 cents? Which I’m gonna throw that out there […] I see no real reason to be uber bearish […] but is it possible that we come back down here? Sure.”
The $0.26 to $0.28 range emerged as the critical juncture for Dogecoin’s near-term outlook: “As long as we remain above this 28 to 26 cent level […] I see no reason to be super fearful. If we pierce that level […] A loss of $0.26 cents on weekly closes would be catastrophic.”
Kevin traced this specific target back to November, when he first suggested Dogecoin would revisit the golden pocket near $0.26. According to him, many were skeptical, but that level eventually got hit: “I took a lot of heat for making that call back in early November when we were at 45 cents […] We ended up coming back down and testing that.”
Looking to the upside, Kevin pinpoints a substantial resistance area between $0.30 and $0.35, calling it “big, big resistance.” Following that, he labels $0.94 to $1.00 as his “next big zone,” though he cautioned traders against assuming a guaranteed climb.
For Dogecoin to breach previous all-time highs and truly enter “full-blown price discovery,” Kevin wants to see a break above the 0.703 and 0.786 Fibonacci retracements—roughly $0.53 and $0.59 cents, respectively: “I don’t see anything holding Dogecoin back from full-blown price discovery […] We want to break 53 cents […] and then the 0.786 at 59 cents. If we’re durably breaking past that 60 cent area, I don’t see anything holding Dogecoin back.”
Drawing parallels to past market cycles, Kevin highlighted how Dogecoin historically checks in with its “bull market support band” and macro support levels before rallying: “We came back, we tested structure support […] bull market support band in this cycle. This is very similar to [the previous cycle]. You can’t deny the similarities.”
He described how Dogecoin’s present chart mirrors its cycle patterns “almost insanely,” referring to a breakout followed by a falling wedge, an initial climb, and a retest of macro support: “Crypto has this insane innate ability to follow its cyclical nature of performance […] it’s truly amazing, really.”
Despite Dogecoin’s cyclical consistency, Kevin reminded viewers that external market factors and Bitcoin’s performance (which he called “the leader of the market”) could always derail patterns: “We obviously need Bitcoin to cooperate. We can’t have any crazy situations happen globally.”
Kevin also examined the DOGE/BTC pair, noting a macro trend line and a golden pocket test: “We have this macro trend line […] we broke through that and we came back in. We’re currently at the bull market support band […] We came back and tested the macro golden pocket again.”
He stressed that if Dogecoin remains above this zone on the DOGE/BTC chart, it should head higher. A breakdown, however, could spell trouble: “Kind of like that 26 cent level […] if we come down and break […] it will coincide with a break of the bull market support band and this macro golden pocket, in which case we can be in some pretty deep s**t.”
Kevin also delved into macroeconomic and geopolitical factors that could influence Dogecoin and the wider crypto sphere. He posited that the President Donald Trump returning to the White House in January is “very bullish” if it leads to improved regulations, reduced conflict, and pro-growth policies: “We have Trump coming in the office in January, meaning we’re going to have a crypto-friendly administration […] If we can get the Ukraine and Russia war ended, that’s going to be bullish for markets […] We can get inflation back down to 2% and then start lowering interest rates faster.”
When And How High Will DOGE Rise Again?
From December dumps to Q1 optimism, Kevin noted how market participants often front-run expectations by about a month. He suggested that if January ends up choppy, February might be the point when markets begin their true climb: “Everyone thought October was going to be bullish. October was not bullish. November was bullish. Now everyone thinks January is going to be bullish […] Maybe February is bullish.”
When pressed for specific price targets, Kevin pointed to several Fibonacci extensions and the Pi Cycle Top indicator on the Dogecoin chart: “If we break through previous all-time highs, the next resistance zone is going to be $0.94 up to $1.32 […] If we break through $1.32, the next big resistance zone that I’m eyeing is $2.19 up to $2.78.”
However, he made it clear that any long-term price predictions depend heavily on technical indicators and confirmations. He highlighted multiple monthly indicators—MACD, RSI, Stoch RSI, and the Pi Cycle Top—as potential signals to exit positions: “I don’t care what the price is at that point […] once we get up into that zone, I’m taking profits off the board. If the monthly indicators start flashing, I’m getting out.”
At press time, DOGE traded at $0.32.