Dogecoin: Is the Meme Coin Primed for a Major Leap, Not a Price Top?
Recent technical analysis suggests Dogecoin's current rally is far from reaching its peak, indicating significant upside potential remains. According to crypto analyst Kevin, historical risk indicators, traditionally signaling market cycle tops, are not flashing red for Dogecoin, suggesting the meme coin is still in a growth phase.
Unpacking Dogecoin's Historical Risk Levels
A detailed chart analysis of Dogecoin's historical risk levels, which range from 0 (lowest risk) to 1 (highest risk), reveals a compelling narrative. Previous market highs, such as Dogecoin's all-time high in 2021, were marked by "red" risk levels, indicative of extreme market overheating and impending exhaustion. However, Dogecoin's current risk level stands at approximately 0.52. This mid-cycle reading is a stark contrast to the danger zones that typically precede a significant market reversal, suggesting the asset has not yet experienced the kind of frothy price action that usually signals the end of a bullish cycle.
Bullish Momentum and a $1 Horizon
The analysis aligns with Dogecoin's recent price movements, which saw it consolidate around $0.22 and $0.23 before holding above $0.25, marking a 12.5% increase in the past 24 hours. This sustained momentum builds on earlier observations by Kevin, who highlighted the significance of monthly Stochastic RSI crosses outside bear markets as precursors to substantial upward rallies. Given the current bullish setup and the looming possibility of a Spot Dogecoin Exchange-Traded Fund (ETF) entering the U.S. market, analysts believe Dogecoin could ascend considerably higher before encountering an overheated market. Reaching the $1 price level, in this scenario, is considered a distinct possibility and not out of the question for this cycle.
