Historical Risk Levels Say Dogecoin Price Has Not Topped Yet, More Upside Coming?

A brand new technical evaluation is suggesting that Dogecoin’s present rally may still have room to grow. According to crypto analyst Kevin, the historic threat ranges that often mark cycle tops are at present nowhere close to flashing crimson for Dogecoin. 

Chart evaluation of Dogecoin’s historic threat ranges exhibits that the meme coin continues to be sitting in what appears like a mid-cycle phase, and the form of overheated value motion that preceeds exhaustion has not but appeared.

Dogecoin Historical Risk Levels Point To More Upside

Kevin’s latest post on the social media platform X showcased Dogecoin’s historic threat ranges in a color-coded chart between 0 and 1, with 0 being the bottom threat and 1 being the best threat. The chart, which covers many cycles going way back to 2014, exhibits moments when threat was at excessive ranges and costs had been close to exhaustion. 

Periods of high market exhaustions are labeled in heat colours, with crimson being the best. For occasion, Dogecoin’s all-time high in 2021 was labeled by a crimson threat stage. On the opposite hand, these of low market exercise are labeled in cool colours, with deep blue being the bottom stage of exercise.

The present studying of 0.52 is way from these crimson hazard zones, which have traditionally aligned with blow-off tops. Instead, Dogecoin is at present in what Kevin describes as a mid-cycle state. That evaluation aligns with the latest price action, which exhibits Dogecoin now holding above $0.25 after final week’s consolidation between $0.22 and $0.23. 

Dogecoin’s Biggest Move Still Ahead?

With the newest Dogecoin threat stage sitting at round 0.52, this means that Dogecoin has not but entered the kind of frenzy that usually defines the ultimate part of a cycle. Therefore, it implies that the king of meme coin still has a lot of rally to play out, and there’s the potential for charting a path to a brand new all-time high if crypto market situations provide the right backdrop. We haven’t had that sort of value motion but this cycle.

Kevin’s newest replace builds on observations he made earlier in August, the place he famous the significance of month-to-month Stoch RSI crosses throughout bull market environments. Whenever Dogecoin registered such crosses exterior of bear markets, the end result was an enormous upside rally. At that point, the Stoch RSI was climbing from the 13 stage, and that is related to weak momentum turning into power.

At the time of writing, Dogecoin is buying and selling at $0.2554, that means it’s up by about 12.5% prior to now 24 hours. Given the present setup and the possibility of a Spot Dogecoin ETF hitting the US market quickly, it’s affordable to anticipate that Dogecoin might climb a lot increased earlier than it enters the overheated territory. In this case, hitting the $1 value stage is not out of the question.