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Today’s Biggest Crypto Gainer: DOG GO TO MOON Spikes 38% But Bearish Divergence Is Seen

Published June 4, 2024 1:07 PM
Nikola Lazic
Published June 4, 2024 1:07 PM

Key Takeaways

  • Dog Go To The Moon surged 38% to a new high.
  • Bearish divergence hints at a potential price reversal.
  • DOG’s upward trend may lead to a new all-time high.

The memecoin mania continues as another one takes turns to lead today’s rally. Dog Go To The Moon  spiked 38% from yesterday, reaching a new all-time high of nearly $0.010. 

Top gainers | Source: Coinmarketcap

This was a continuation of an uptrend from May 15, when it started to climb from $0.0020, increasing by over 400%. Despite this bullishness, the technical indicators point at a bearish divergence, hinting at a potential reversal. 

DOG Price Analysis 

DOG started trading at $0.00050 on the Gate.io exchange on April 25 and spiked to $0.0058 on the same day. However, we saw a stable decline, forming a descending triangle until May 15, when it fell to $0.00188.

DOGUSD | Credit: Nikola Lazic

A new uptrend started, leading to today’s all-time high close to the 1.618 Fibonacci extension level. Even though we saw further rise today, it was followed by tumbling as a larger 14% red candle appeared, hinting at signs of struggle. 

But, more importantly, there is a bearish divergence between technical indicators and the price action. From its previous peak on May 30 of $0.0085, both the 4-hour chart RSI and MACD displayed a downward trend, while the price remained in an uptrend. 

MACD did form a bullish cross on June 3, but with RSI being just below its overbought zone of 70%, this is a sign of caution. 

DOG Price Prediction 

There is a strong chance that DOG is in its third wave from the larger five-wave impulse from April 25. A reversal is likely with its optimal target of 1.618 Fibonacci getting close, signs of struggle on the price action side, and bearish divergence with technical indicators. 

DOGUSD | Credit: Nikola Lazic/Tradingview

This should be a corrective wave 4 that consolidates the price before its final rise. A shallow correction would be expected, preferably above $0.0070. Should a DOG fall below this area, the count would be invalidated. 

But, if the pattern develops as described above, and we see it respecting the assumed support area, another upturn will lead DOG to a new all-time high. Our target is $0.012, but if the momentum remains strong, it could continue rising even further. 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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