The biggest meme coin by market capitalization has jumped by double digits over the past 30 days, increasing its dominance in its niche.
However, certain technical indicators suggest the bears may soon regain control.
The Incoming Correction?
As of press time, DOGE trades at around $0.114 (according to CoinGecko), representing an impressive 8% increase on a two-week basis and a 25% surge for the month. In fact, it has outperformed many leading cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), over these time frames.
Nonetheless, the renowned analyst Ali Martinez tempered the excitement in the Dogecoin community after noting that the TD Sequential indicator had flashed a sell signal on the meme coin.
Another short-term warning sign is DOGE’s Relative Strength Index (RSI). The technical analysis tool is often used by traders to spot potential price reversal points and ranges from 0 to 100.
Readings above 70 indicate that the meme coin’s valuation has risen too much, too quickly, and could be due for correction. On the contrary, anything below 30 suggests that the token is oversold and on the verge of a resurgence. As of this writing, DOGE’s RSI stands at roughly 88.
The Bullish Scenario
Despite the aforementioned indicators hinting at a price decline in the near future, multiple market observers remain optimistic that the meme coin has plenty of fuel left to post further gains.
X user Ryker claimed that DOGE’s chart “looks great,” predicting that it “will lead meme trend back together.” For their part, JAVON MARKS argued that the asset has started responding even more positively to a major bullish divergence that has been holding with the MACD.
They envisioned a whopping 500% breakout to the $0.6533 target, which could then open the door to an ascent to a new all-time high of approximately $1.25.
MikybullCrypto followed up with an even more optimistic outlook. They suggested the current levels are “the best area” to hop on the bandwagon before “the massive bullish tide,” forecasting an astronomical explosion to $12.
It is important to note that such a pump seems quite improbable (at least for now), as it would require DOGE’s market cap to exceed $1.8 trillion. In comparison, the current capitalization of BTC stands at around $1.61 trillion, while the total value of the entire crypto sector is less than $2.8 trillion.
The post Dogecoin (DOGE) Soars 25% in a Month, But Key Indicator Flashes a Sell Signal appeared first on CryptoPotato.
