The Dogecoin price is currently exhibiting a highly bearish chart pattern on the 4-hour time frame, signaling potential caution for investors. After forming a bullish falling wedge pattern between November 12 and 19, the anticipated breakout was short-lived and failed to meet bullish expectations.
On November 19, Dogecoin broke out of the formation, sparking initial optimism among traders. However, crypto analyst Kevin (@Kev_Capital_TA) had predicted the breakout would be weak, and subsequent price movements validated his forecast.
Where Is Dogecoin Price Heading Next?
The memecoin faced a sharp rejection at a significant resistance level, specifically the macro 0.786 Fibonacci retracement level. Kevin emphasized that until this level is “broken cleanly and violently, there’s nothing to get overly crazy about.” He also pointed out that Bitcoin (BTC) is at major resistance, suggesting that Dogecoin’s next significant move will likely coincide with Bitcoin clearing the $100,000 mark. “Until then, everything’s just gonna mosey around,” he noted.
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Urging traders to temper their enthusiasm, Kevin stated, “Please control your excitement as there is nothing in the short term to be excited about. BTC is still at major resistance and so is Dogecoin. Nothing has broken yet.” He highlighted the importance of Bitcoin’s movements, adding, “It’s more important to provide technical analysis on BTC than on Dogecoin at the moment. DOGE is just trading sideways, waiting for Bitcoin to make a decision on higher or lower. Where Bitcoin goes, Doge will go in the short term.”
Analyzing the 4-hour chart, Kevin identified a “nasty triple top” at the macro 0.786 Fibonacci level for Dogecoin—a bearish signal that could indicate upcoming downward pressure. He warned that if a correction to $0.30 occurs, as he had previously suggested, “a lot of blind perma bulls are gonna need to do some explaining.”
A triple top is a bearish reversal pattern in technical analysis that signifies a potential shift from an uptrend to a downtrend. It occurs when the price reaches the same resistance level three times, each time retreating after failing to break through. Dogecoin’s repeated inability to surpass the 0.786 Fib at $0.41 suggests weakening bullish momentum in the short…
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