Has the Dogecoin Boom Ended? Cryptocurrency Analyst Warns of Sudden Sell Signals

After staging a major price increase, Dogecoin is currently in a consolidation phase. This is also reflected in the technical indicators. Cryptocurrency analyst Kevin (@Kev_Capital_TA) is warning of a potential sell signal. In his latest update on X, Kevin shared the weekly DOGE/USDT chart and outlined the technical signs that traders should closely monitor. Dogecoin price analysis Kevin emphasized that Dogecoin is "showing sell signals on the weekly time frame with the appearance of red dots", warning that this signal needs to be confirmed in the coming week to strengthen its validity. He identified the convergence of three strong technical indicators, including a decreasing Moving Average Convergence Divergence (MACD) and a Stochastic Relative Strength Index (Stoch RSI) that has "reached the expected peak for a bear cross". These indicators together suggest a potential impending price decrease. However, Kevin balanced this with the observation that "price action still seems bullish and money flow is also increasing," indicating that these factors are currently outweighing the bearish signals.

Despite the long-term sell signals, Kevin still leaves open the possibility of continuing the short-term price increase. He noted that Dogecoin has "closed at an all-time monthly high candle," marking an important milestone while acknowledging that "the downward trend is still a risk." Looking ahead, Kevin pointed out the importance of the key resistance level, stating, "Until we clearly break the 0.60 cent threshold, there's nothing worth getting excited about," referring to his weekly chart including Fibonacci price extensions up to $1.

Furthermore, Kevin is carefully considering the macroeconomic factors that could impact the performance of Dogecoin. He points out that the "altcoin season" could act as a catalyst for the ongoing strength of DOGE, depending on whether Bitcoin dominance drops below 55%. "If BTC Dominance clearly breaks below 55%, you will have your #ALTSEASON, everyone," he explains.

In addition, Kevin has shared his strategy regarding long-term moving averages, stating, 'When these two long-term moving averages intersect on Dogecoin, I will sell a significant portion of my holdings. They have successfully called the tops on DOGE multiple times. They are rising fast!' Notably, cryptocurrency analysts are referring to the Pi Cycle Top Indicator for Dogecoin, a tool commonly used for Bitcoin (BTC). This indicator is based on the intersection of two moving averages - the 111-day moving average and the 350-day doubling moving average - to signal potential market peaks. Last week, Kevin revealed, "One of my secret signals for Dogecoin, which traditionally is only considered effective for BTC, is the Pi Cycle top signal. This indicator has accurately predicted every peak and trough of DOGE's cycle in each of its cycles. When the two moving averages intersect along with the monthly RSI at a certain level, that's when I plan to withdraw a significant portion from the market." At the time of press, DOGE was trading at $0.41.