Dogecoin (DOGE) rises 25% in a month, but a key indicator flashes a sell signal
Is the DOGE rally running out of steam?
The largest meme coin jumped by double digits in market capitalization in the last 30 days, adding to its dominance.
However, some technical indicators suggest that the bears may regain control soon.
The coming correction?
As of press release, DOGE is trading at around $0.114 (according to CoinGecko), which represents an impressive 8% increase in two weeks and a 25% month-on-month increase. In fact, it has outperformed many leading cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) in these time frames.
However, well-known analyst Ali Martinez raised the excitement in the Dogecoin community after he revealed that the TD series indicator has flashed a sell signal on meme coin.
Another short-term warning signal is the DOGE Relative Strength Index (RSI). The technical analysis tool is often used by traders to identify price reversal points and ranges from 0 to 100.
The readings above 70 indicate that the value of Mem Coin has increased significantly, very quickly and a correction can be made. Conversely, anything below 30 indicates that the token is oversold and on the verge of a rebound. As of this writing, the DOGE RSI is at approximately 88.
The Bullish Scenario
Although the above indicators point to a near-term bearishness, many market observers hope that Memcoin has plenty of fuel left to post further gains.
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X user Ryker said the DOGE chart “looks pretty good” and predicted it would “lead the meme trend to one.” JAVON MARKS, on the other hand, argued that the asset has started to react more positively to the large bullish divergence it has been holding against the MACD.
They consider a 500% breakout to the $0.6533 target.
Mikibul Crypto followed a more optimistic view. He predicted a breakout to $12, suggesting current levels are the “best environment” for a group to jump ahead of a “massive wave of bullishness.”
It should be noted that such a pump seems highly unlikely (at least for now) as DOGE's market cap would need to rise above $1.8 trillion. By comparison, BTC's current capitalization is around $1.61 trillion, while the total value of the entire crypto sector is just under $2.8 trillion.
