In the ever-changing landscape of cryptocurrency, Dogecoin is showing signs of consolidation just beneath the $0.40 threshold. Over the past week, DOGE has consistently traded below this level, dipping to a low of $0.343. This price action has sparked discussions regarding whether the digital coin has achieved its peak for the current bullish cycle.
Nonetheless, not all investors share this viewpoint. Crypto analyst Kevin, known on social media as @Kev_Capital_TA, presents a different perspective based on his technical analysis. He argues that Dogecoin has yet to reach its peak for this cycle.
Predicting Dogecoin’s Cycle Peak: Unveiling the Potential
Despite a slowdown in Dogecoin’s rally since achieving a three-year high of $0.4265 on November 13, Kevin believes there’s still significant upside potential. By leveraging a fascinating technical tool, he forecasts that Dogecoin’s price could ascend to $3.9, effectively quadrupling its previous all-time highs.
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Kevin’s prediction primarily hinges on the innovative application of the Pi Cycle tops indicator, a tool traditionally utilized for Bitcoin analysis. Surprisingly, this indicator has demonstrated remarkable accuracy in mapping Dogecoin’s price movements in past cycles. Kevin elucidates that the Pi Cycle indicator, combining two moving averages with the Monthly Relative Strength Index (RSI), has consistently predicted Dogecoin’s price peaks and troughs over the years. His analysis, supported by a weekly candlestick price chart, underscores the indicator’s past success in anticipating cycle peaks and troughs in both 2018 and 2021.
According to Kevin, while the moving averages within Dogecoin’s Pi Cycle tops indicator are trending in the same direction, they have not yet intersected. This suggests substantial upward potential for Dogecoin before it reaches its anticipated cycle peak.
What a $3.9 Dogecoin Price Would Mean
Kevin’s forecasted peak of $3.9 is derived from the 1.618 Fibonacci extension level, projected from the current cycle’s Pi Cycle low. This method mirrors historical patterns where previous cycle peaks in 2018 and 2021 aligned with the same Fibonacci extension level from their respective Pi Cycle lows. Kevin also identifies intermediate price targets to watch, such as $0.9 to $1.3 and $2.3 to $2.7, as milestones on the path to the predicted peak.
If Dogecoin reaches the $3.9 mark, its market capitalization would soar to approximately $572 billion, considering the current circulating supply of 146.86 billion DOGE tokens. This substantial market cap would surpass Ethereum’s, assuming Ethereum’s market cap remains constant.
Currently, Dogecoin is trading at $0.389, reflecting a 3.5% increase over the past 24 hours, though it has declined by 5.2% over the past week. Achieving the $3.9 target would signify a remarkable 902% increase from the current price level.
