Dogecoin Price Prediction: Is a $3 Target Achievable with a Golden Cross Approaching?

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Dogecoin continues its upward trajectory, sparking discussions on potential highs in this cycle. While some speculate that DOGE could reach $3, crypto analyst Kevin Capital offers a more cautious outlook.

In a recent post on X (formerly Twitter), Capital noted that Dogecoin has historically reached its “macro golden pocket” at the 1.618 Fibonacci extension in previous cycles. For this market cycle, that golden pocket is at $3.90, although he believes this target is unlikely.

The last time #Dogecoin saw a weekly Golden Cross was 4 years ago. When the Golden Cross completed we saw 3 weeks of dip/consolidation before we went on to make a cycle top 119 days after the cross. If we follow anything near to last cycle then we should expect something similar… pic.twitter.com/gRwQrcC0lL

— Kevin (@Kev_Capital_TA) November 9, 2024

Instead, Capital suggests a more realistic peak around $1.80, depending on Bitcoin’s performance, of course. Despite his reservations about $3, Capital highlighted an upcoming “Golden Cross” on the weekly chart, a bullish technical indicator that last appeared four years ago.

If history repeats itself, DOGE could see a brief cooling period followed by a parabolic rally beginning in December and extending into spring 2025.

Macro Golden Pocket: $3.90 (unlikely)
Alternative Target: $1.80 (depending on BTC performance)
Golden Cross Indicator: Potential for a rally by December 2024

Why Is a $10 Target Entering the Conversation?

While Kevin Capital downplays the likelihood of a $3 rally, another analyst, Dima James, sees even greater potential. According to James, if DOGE’s weekly chart closes above $0.18, it could trigger a parabolic move reminiscent of past bull runs. In the 2016 and 2021 cycles, Dogecoin saw massive rallies, gaining 8,000% and 18,000%, respectively.

James believes a similar surge could happen, potentially even pushing Dogecoin to the $10 mark if adoption and technological advances continue to drive demand.

He noted that historical patterns suggest DOGE’s momentum often builds after the “green and red lines” cross on the weekly chart—a pattern currently forming. If this movement materializes, James argues, a substantial rally could be on the horizon.

Parabolic Trigger: Weekly close above $0.18
Historic Rally Gains: 8,000% (2016) and 18,000% (2021)
Potential Price Target: Up to $10 (depending on adoption)

Technical Analysis: Current Price Action Signals Uptrend

Dogecoin is currently trading at $0.391, maintaining an upward trend within a bullish channel on the 4-hour chart.

Dogecoin has had an explosive rally, displaying one of its strongest moves in recent times. As of November 12, 2024, DOGE surged above $0.38, marking an impressive +9.14% intraday gain on the 4-hour chart. This rally is accompanied by overwhelming buying pressure and high RSI levels, signaling an intense overbought condition.

Technical Indicators

Price Action and Volume:
- The price has surged significantly, with consecutive bullish candles showing strong upward momentum.
- Volume has also increased substantially, confirming high market interest and strong buying activity.
- Key support zones below $0.20 have provided the base for this upward explosion, acting as a solid foundation for this rally.
Relative Strength Index (RSI):
- Current RSI Value: 96.68 – this level is extremely high, placing DOGE in an overbought territory.
- With the RSI nearing 100, DOGE’s price momentum could face a potential reversal or a cooling-off period. Such high RSI levels are typically unsustainable and often followed by retracements.
- The RSI-based moving average sits at 90.03, which DOGE’s RSI has comfortably exceeded, indicating sustained bullish dominance.
Support and Resistance Levels:
- Support Levels:
  - Strong support lies near $0.15, where previous accumulation took place.
  - Additional support exists around $0.25, which could act as a first cushion in case of a pullback.
- Resistance Levels:
  - The next psychological resistance level for DOGE is $0.40. A breach of this level could drive further FOMO buying, pushing prices even higher.
  - If DOGE manages to hold above $0.38, there’s potential for it to test higher levels, but caution is advised given the overbought RSI.

Outlook and Conclusion

Dogecoin’s price is displaying parabolic behavior, fueled by intense buying pressure and retail enthusiasm. However, the extreme RSI value suggests that a correction could be imminent. Traders should watch for potential retracements, as price action near $0.40 could trigger profit-taking.

In summary, DOGE’s bullish momentum is impressive, but caution is warranted. For those looking to enter, waiting for a pullback to support levels might provide a better entry point.