Dogecoin has captured attention once again, especially with its recent rally gaining traction in the cryptocurrency market. A new technical analysis suggests that this upward momentum may still have room to grow. According to crypto analyst Kevin, the historical risk levels that typically signal cycle tops are not currently indicating any immediate danger for Dogecoin, pointing to a potentially long-lasting bullish trend.
Within the analysis, Kevin highlights that chart evaluations of Dogecoin’s historical performance reveal it is still in what appears to be a mid-cycle phase. This means the price actions we’re observing do not yet reflect the kind of overheating typically seen just before exhaustion sets in. As such, investors and enthusiasts are paying close attention to the developing patterns.
Dogecoin Historical Risk Levels Point To More Upside
In Kevin’s recent share on the social media platform X, he provided a color-coded chart illustrating Dogecoin’s historical risk levels, ranging from 0 to 1. Here, 0 signifies the lowest risk while 1 represents the highest risk. The analysis encompasses several cycles dating back to 2014, showcasing moments when the risk was at its peaks—often aligning with the heights of market exuberance.
The chart categorizes periods of high market exhaustion using warm colors, with red representing the most extreme situations. Notably, Dogecoin’s all-time high in 2021 was marked by a red risk level. Conversely, periods characterized by lower market activity are portrayed in cooler hues, where deep blue stands for the least active phases.
Presently, the risk reading stands at 0.52, which is significantly lower than the critical red zones historically associated with blow-off tops. This places Dogecoin in what Kevin refers to as a mid-cycle state, aligning with the coin’s recent price stabilization above $0.25. After a previous consolidation phase around $0.22 to $0.23, this demonstrates a positive shift in momentum.
Dogecoin’s Biggest Move Still Ahead?
The current risk level of approximately 0.52 suggests that Dogecoin has yet to enter the dizzying frenzy often marking the final cycle phase. This opens the door for further gains, with potential for the coin to chart a path toward new all-time highs—provided the broader crypto market conditions offer the right environment. Notably, such frenzied price action has not materialized this cycle, hinting that there could be significant moves ahead for the meme coin.
Kevin’s latest insights build on earlier observations he shared in August, highlighting the significance of monthly Stoch RSI crosses during bullish market conditions. Whenever Dogecoin has recorded these crosses outside of bearish markets, substantial upside rallies have typically followed. Back then, the Stoch RSI had just begun climbing from the 13 level—a point that often indicates a transition from weak momentum to strengthening performance.
As of the current moment, Dogecoin is trading at $0.2554, reflecting an increase of about 12.5% over the past 24 hours. Coupled with the potential launch of a Spot Dogecoin ETF in the United States, expectations are rising that Dogecoin may indeed climb higher before entering any overheated territory. With the right momentum, hitting the $1 price level is no longer solely a dream; it’s becoming an increasingly probable outcome.