đ¶ Dogecoin Flashes Rare Buy Signal â But One Wrong Move Could Sink the Rally!
The analyst took a swing long position at $0.141, citing a good risk-reward trading zone. âIf the worst happens, you can lower your stop loss, but the upside is great,â he added. DOGE has gained 6â7% since then, but the big test is ahead.
Kevin said this level has provided structural support since the 2022â2023 bear market. The macro 0.382 Fibonacci retracement from Dogecoin's entire bull run peak to its bear market bottom matches long-term trendlines and a weekly demand candle. âThis is your zone,â he said. This goes on your charts.â
This recovery notwithstanding, Dogecoin remains below all its major daily and 4-hour moving averages. Next crucial resistance is $0.19. Kevin said, âIf you can reclaim $0.19 on Dogecoin, you then break back into this rangeâthe $0.19 to $0.26 range,â which is important to any continuing upward. Until then, avoid anticipating a complete reversal: "Be careful not to overreact..." much work remains.â
The RSI also narrates. Kevin noted that Dogecoin's weekly RSI has bounced off 38 during the bull cycle. The coin is again hovering over that zone. He cautioned that anything below 38 on this weekly RSI would indicate a collapse of the $0.143 to $0.127 zone, which would be very, very dubious.
Momentum indications on many timeframes are mixed. Kevin's own indicator showed a buy signal on the daily chart's oversold circumstances. On the 3-day timescale, market cipher momentum is âkind of trying to clipâ upward and money flow is gradually rising. He said, âThat three-day candle was very nice.â âThatâs what you wantâstrong demand candles at major support.â
Kevin finished with an experiential caution. My time in this game is lengthy. Sometimes the first response to patterns is incorrect. This traps people.â Confirmation of a reversal is key, and the advance over $0.19 is the gatekeeper. For now, Dogecoin is precarious. The indications and danger are present.
