On the 4-hour chart, Dogecoin’s price is displaying a bearish pressure, creating a “nasty triple top” pattern, according to crypto analyst Kevin (@Kev_Capital_TA).
If Dogecoin can not break through $0.41, which is being held as key resistance by the 0.786 Fibonacci retracement, it could signal a shift from uptrend to a downtrend. Following a brief breakout from November 12 to Nov 19, optimism among traders quickly dissipated, Dogecoin being rejected by the resistance.
Dogecoin Bullish Scenario Relies On $0.41 Break
As for the coin price movements, however, the weakened breakout, predicted by Kevin, will largely depend on Bitcoin (BTC) being made to face major resistance.
Kevin said traders should be careful until Bitcoin clears $100,000 trigger line as Dogecoin will trade sideways until that price is reached. According to him, movements in BTC would affect Dogecoin’s price and there were not going to be a lot of changes in the short run.
But if the price of Dogecoin plummets to $0.30, some of that bullish speculation may need reconsidering, warned Kevin. According to him, a 30-40% correction from the local top could take place in a bull market, which is in line with retracement levels.
Kevin looked ahead to a bullish case for DOGE if the coin can break through the $0.41 resistance level. If the price were to break out in a forceful way, $0.80 to $0.85 would be as high as it could go. But he added that this would necessitate big movement from Bitcoin.
Kevin pointed out that the monthly candle close is in 11 days away and closing above $0.335 would be a big event for DOGE, as it sets a new all-time high for monthly candle closes.
