Meme coin Dogecoin looks like this starts to consolidate just below the $0.4 price level. In particular, the Dogecoin price has traded below $0.4 over the past five days, reaching a low of $0.343. Not surprisingly, this DOGE price performance will lead one to wonder if this is the case has already reached its price peak this bull cycle.
However, not every market participant agrees with this thought process. According to the technical analysis of crypto analyst Kevin (@Kev_Capital_TA), the Dogecoin price is currently nowhere near the top of this cycle.
Where is the Dogecoin price at the top this cycle?
The Dogecoin price rally has slowed since hitting a three-year high of $0.4265 on November 13. However, using an intriguing technical indicator, Kevin highlighted that the Dogecoin price still has a lot of room to run. His analysis suggests that DOGE’s price top for this cycle could reach $3.9, a level that would effectively quadruple its current record highs.
Kevin’s prediction relies heavily on a unique application of the Pi Cycle tops indicator, a tool traditionally used for Bitcoin but, as he notes, has proven surprisingly accurate at tracking Dogecoin price behavior each cycle. He explains that the indicator, which combines two moving averages with the Monthly Relative Strength Index (RSI), has accurately predicted the tops and bottoms of Dogecoin prices over the years. Notably, the weekly Dogecoin price chart that accompanied this outlook shows that the Pi cycle accurately predicted Dogecoin’s cycle tops and bottoms in 2018 and 2021.
The analyst noted that while the moving averages in Dogecoin’s Pi Cycle top indicator are moving in the same direction, they are far from crossing each other. This suggests that Dogecoin has significant room for upside before reaching the expected peak.
Dogecoin Price Top at $3.9: What It Means
Kevin’s predicted price top of $3.9 is derived from the Fibonacci extension level of 1.618 when projected from this cycle’s Pi cycle low. This approach mirrors historical Dogecoin price performance, with previous cycle tops in 2018 and 2021 coinciding with the same Fibonacci extension level from their respective Pi Cycle lows. The analyst further highlighted the intermediate price ranges to watch, including $0.9 to $1.3 and $2.3 to $2.7, as milestones on the way to the forecast cycle peak.
A Dogecoin price of $3.9 would put its market cap around $572 billion, given the current total circulating supply of 146.86 billion DOGE tokens. With such a huge market cap, Dogecoin would even overtake Ethereum in the market cap rankings, indicating that the latter price is not growing at the same pace as the former.
At the time of writing, Dogecoin is trading at $0.389, up 3.5% in a 24-hour span and down 5.2% in a seven-day span. Achieving the Dogecoin price target of $3.9 would represent an upside of 902% from the current price.
Featured image created with Dall.E, chart from Tradingview.com