DOGE forms 'annoying triple top': analyst reveals next move

The DOGE price is currently showing a highly bearish chart pattern within a 4-hour time frame, indicating that investors may need to proceed with caution. After forming a bullish falling wedge pattern between November 12th and 19th, the expected breakout was short-lived and failed to meet bullish expectations. On November 19th, DOGE broke out of this pattern, sparking initial optimism among traders. However, Cryptocurrency analyst Kevin (@Kev_Capital_TA) had predicted that the breakout would be very weak, and the subsequent price action confirmed his prediction.

DOGE suffered a sharp decline at important resistance levels (especially the macro 0.786 Fibonacci retracement level). Kevin emphasized that there is no need to go crazy unless there is a thorough and fierce breakthrough of this level. He also pointed out that BTC is facing significant resistance, indicating that the next major trend of DOGE may occur simultaneously with BTC's breakthrough of the $100,000 level. "Everything will come slowly before that," he said.

Kevin urged traders to control their enthusiasm, saying, "Please control your excitement because there is nothing to be excited about in the short term. BTC is still at the main resistance level, and so is DOGE. There has been no breakthrough yet. He emphasized the importance of BTC's movements, adding, "At the moment, it is more important to conduct a technical analysis of BTC than a technical analysis of DOGE. DOGE is simply trading on the sideways, waiting for BTC to make a decision to pump or fall. Where BTC goes, DOGE will go in the short term. ”

After analyzing the 4-hour chart, Kevin found that Dogecoin has formed an "annoying triple top" at the macro 0.786 Fibonacci level, which is a bearish signal that may indicate upcoming downward pressure. He warned that if the correction to $0.30, as he previously mentioned, occurs, "many blindly permanent longs will need to do some explaining."

Triple top is a bearish reversal pattern in Technical Analysis, indicating a possible shift from a rise to a downtrend. This occurs when the price reaches the same resistance level three times and fails to break through before falling back. DOGE has repeatedly failed to break the 0.786 Fibonacci level ($0.41), indicating a weakening bullish momentum in the short term.

Kevin emphasized that DOGE has not yet broken through: "Unless it can cleanly break through the macro 0.786 Fib $0.41, it can only consolidate sideways." Looking ahead, he outlined a bullish scenario, provided that this key resistance level is overcome. "If DOGE breaks through the macro 0.786 Fib with strength, then $0.80 to $0.85 is possible. But there is still a lot of work to do. BTC needs to pump further," he explained.

For the past few days, Kevin has been predicting a deeper pullback for DOGE. The formation of a triple top and rejection of the 0.786 Fibonacci level supported his main hypothesis. He outlined his initial price target: 'We are looking for DOGE to hold in the range of $0.30 to $0.26, which is the golden pocket retracement level. This is a 30-40% pullback from the local top, which is a perfect scale pullback in a Bull Market.'

In the long term, Kevin emphasized the importance of the upcoming monthly candle Closing Price. "DOGE's next big target is to close above $0.335 within 11 days. This will set the highest monthly candle Closing Price in history for DOGE, and I will follow it closely," he said.


(Data Source: Jake Simmons)