Dogecoin (DOGE) Price Correction May Not Be Over Yet, Analyst Says the Market Could Retrace to the $0.30-$0.26 Range

Dogecoin (DOGE) has recently experienced a staggering rally. Over the span of eight days, DOGE surged nearly 200%, reaching a local peak at $0.4385 on Tuesday.

Dogecoin (CRYPTO: DOGE) has soared nearly 200% over eight days, hitting a local peak of $0.4385 on Tuesday. This rapid ascent pushed the daily Relative Strength Index (RSI) to almost 93, indicating extreme overbought conditions.

Since then, Dogecoin has corrected by 19%, trading at $0.37 as of press time. However, according to crypto analyst Kevin (@Kev_Capital_TA), who has gained a lot of attention on X for his Dogecoin price analyses, the correction phase may not be over yet. In a series of updates, Kevin discusses how low Dogecoin could go before resuming its upward trajectory.

How Low Can Dogecoin Go?

“My first price target and a level we will want to hold for Dogecoin is the $0.30-0.26 range, which is the golden pocket retrace levels,” Kevin stated. “That’s a 30-40% correction from the local top, which in a bull market is a perfect size correction.”

Kevin further explained the importance of RSI levels in predicting market movements. “A healthy 1-3 week correction/consolidation to cool off indicators would be the most beneficial thing that can happen to Dogecoin. Happened multiple times on the way up in 2020-2021,” he noted. “My opinion still remains this occurs soon based off the technical data I am looking at.”

Drawing parallels to the previous bull market, he added: “Back in the 2020-2021 bull market for Dogecoin, it hit a 90+ on daily RSI three times, each time marking a local top or consolidation period before the next leg up. We just hit 90+ on the daily RSI for the first time, signaling that we potentially have 1-2 more legs up remaining in this bull market before we find the macro top. PS: The second and third legs were both bigger than the first leg.”

On the lower time frames, Dogecoin's price action formed a symmetrical triangle, a chart pattern that is typically associated with periods of consolidation that precede significant price movements. Kevin observed: “Tracking this weird Dogecoin symmetrical triangle. Honestly a 50/50 which way this breaks. I still favor the correction due to daily RSI being 90+.”

The symmetrical triangle can act as either a continuation or reversal pattern, depending on the market conditions. For Dogecoin's price, the breakdown from the triangle aligns with Kevin's expectation of a correction due to the overbought RSI levels.

To estimate the potential magnitude of the price drop following the breakdown from the symmetrical triangle, traders measure the height of the triangle's base — the widest part of the formation. This measurement is then projected downward from the point of breakdown, providing a target for the price movement.

Applying this method to Dogecoin suggests a correction towards the $0.28 price level, which closely aligns with Kevin's analysis targeting the $0.30-$0.26 range. “Looks like the correction I have been calling for the last couple of days is beginning on Dogecoin,” Kevin stated after observing the price action. “Can’t go straight up, folks. Dips are healthy and reset the indicators so we can go higher. Hopefully nobody gets mad at me anymore for delivering the truth.”

Dogecoin's price has retraced about 19% from its local top, trading at approximately $0.37 as of press time. The price seems to have found temporary support at $0.35, but with the daily RSI only resetting to 80 — still in overbought territory — a continuation of the correction cannot be ruled out.

“A healthy 1-3 week correction/consolidation to cool off indicators would be the most beneficial thing that can happen to Dogecoin,” Kevin reiterated. “Happened multiple times on the way up in 2020-2021. My opinion still remains this occurs soon based off the technical data I am looking at.”