Dogecoin Flashes Rare Buy Signal—But One Move Could Ruin It

Dogecoin is as soon as once more at a technical crossroads, flashing a uncommon confluence of bullish indicators—however one incorrect transfer may unravel the setup completely. In his June 24 video evaluation, crypto strategist Kevin (@Kev_Capital_TA) outlined why Dogecoin’s latest bounce from the $0.14 area might mark the start of a brand new uptrend—or the final gasp earlier than breakdown.

Dogecoin Hits Crucial Zone

“We’re hitting a very, very key level, folks,” Kevin confused. “That being the weekly 200 SMA, the weekly 200 EMA, and again that macro 0.382 Fib.” The confluence of those ranges between $0.143 and $0.127 marks what he calls a “make-or-break zone,” and Dogecoin is at the moment sitting proper in the course of it.

The analyst beforehand entered a swing lengthy place at $0.141, highlighting the world as a robust risk-reward commerce zone. “Worst comes to worst, you could throw your stop loss below that level… but the upside is great,” he stated. Since then, DOGE has bounced about 6–7%, however the actual take a look at lies forward.

Kevin famous that this stage has acted as structural assist for the reason that finish of the 2022–2023 bear market. The macro 0.382 Fibonacci retracement, drawn from Dogecoin’s full bull run prime to its bear market backside, aligns with long-standing trendlines and a weekly demand candle. “This is your zone,” he emphasised. “Mark this off on your charts.”

Associated Studying

But regardless of the latest bounce, Dogecoin stays beneath all its main each day and 4-hour transferring averages. The following essential resistance stands at $0.19. “If you can reclaim $0.19 on Dogecoin, you then break back into this range—the $0.19 to $0.26 range,” Kevin defined, calling it the important thing to any continuation greater. Till then, he cautions towards assuming a full reversal is underway: “Let’s not get too crazy here… still a lot of work to do.”

The RSI additionally tells a narrative. Kevin identified that Dogecoin’s weekly RSI has repeatedly bounced off the 38 stage all through the present bull cycle. The coin now hovers simply above that zone as soon as once more. “Anything below 38 on this weekly RSI is going to be a breakdown of that $0.143 to $0.127 range, which would be very, very sketchy at that point,” he warned.

Momentum indicators on a number of time frames are sending blended alerts. The each day chart is flashing oversold situations, and Kevin’s customized indicator lit up with a purchase sign. On the 3-day timeframe, market cipher’s momentum wave is “kind of trying to clip” upward, whereas cash circulate is starting to tick barely greater. “That three-day candle was very nice,” he added. “That’s the kind you want to see—strong demand candles at major support.”

Associated Studying

Nonetheless, Kevin urged warning. “If that doesn’t work out and we start to head lower, the daily time frame doesn’t produce the buy signal, doesn’t produce much upside, we start to roll over—then you know your Dogecoin support.”

DOGE/BTC Stays The Focus

On the DOGE/BTC pair, Kevin famous that Dogecoin has returned to an “orange zone” he beforehand highlighted as essential assist. The power of that zone might decide whether or not DOGE can maintain relative power towards Bitcoin—or proceed to bleed decrease as BTC dominance will increase. “Doge will follow Bitcoin at the end of the day,” he reiterated. “Anyone not doing their Dogecoin analysis in tandem with Bitcoin and USDT dominance—be suspect of that analysis.”

Kevin concluded with a warning rooted in expertise. “I’ve been in this game a long time. The first move out of these patterns… sometimes it’s the wrong move. It traps people.” Whereas a reversal could also be underway, affirmation is all the pieces—and the climb above $0.19 stays the gatekeeper. For now, Dogecoin teeters on the sting. The alerts are there—however so is the danger.

At press time, DOGE traded at $0.166.

Featured picture created with DALL.E, chart from TradingView.com