Dogecoin Flashes Sell Signal On Daily Charts, Is $1 Possible Or Is It A Pipe Dream?
The price of Dogecoin has been underwhelming, plagued by continuous sideways movement. This has led to mixed signals on the chart, making it difficult to predict where the altcoin’s price might be headed. Multiple bull and bear formations have appeared, with recent sell signals making the $1 target seem even more elusive.
Multiple Buy Signals On The Dogecoin Daily Chart
Renowned Dogecoin analyst on X (formerly Twitter), @Kev_Capital_TA, shared an analysis indicating some bearish developments for DOGE. According to Kev, the meme coin has exhibited two sell signals on its daily chart. These signals emerged as the DOGE price faced rejection at the falling wedge resistance, indicating weakness in the price action. Such a scenario suggests that Dogecoin’s price might be unable to sustain its current level and may be headed for a decline.
However, these sell signals may only be relevant in the short term. Kev also highlighted an increase in momentum on the 3-Day LMACD, which contradicts the bearish signals on the daily chart. This implies that even if the selling pressure materializes, it may not be as severe as anticipated. Kev elaborates, “The 3-day LMACD is still showing increasing momentum to the upside, indicating that any pullback on the daily chart will be short-lived and not as powerful. We should very soon break this wedge to the upside.”
In essence, Dogecoin is currently in a tug-of-war between 3-day bullish momentum and daily bearish signals. This makes the immediate future of DOGE somewhat uncertain, but not entirely bleak.
Can DOGE Still Reach $1?
Despite the ambiguity, the target for many Dogecoin investors remains $1. Yet, even with market recoveries, DOGE remains significantly far from this goal. Responding to Kev’s analysis, an X user inquired whether DOGE could still hit the $1 mark during a bull run. Kev responded cautiously, estimating a 60% chance that DOGE will not reach the target and a 40% chance that it might. This assessment underscores the considerable distance DOGE must cover to achieve a 1,000% rally, which seems unlikely in the near term.
In conclusion, while Dogecoin shows some bullish signs, the journey to $1 is fraught with challenges. Investors should keep a close watch on both the daily and 3-day charts to better understand the evolving dynamics of DOGE’s price movements.
