Is DOGE getting ready for a big rally?

TL; DR

Dogecoin (DOGE) is up 15% this week, breaking a six-month downtrend, with analysts predicting it could reach $0.21 amid strong whale activity. However, DOGE's high RSI suggests that it is overbought above 80, indicating that a price correction may be imminent.

Table of Contents

Toggle

‘started'

Dogecoin (DOGE), like many other meme coins, has been on a high lately, with its price rising by 15% every week. It is currently trading at $0.12 (according to CoinGecko), and many analysts believe that this could be the peak of a major bull run.

Captain Fibic of the X user He said he deserved it. The price of DOGE it has It broke a six-month falling wedge pattern to the top. The businessman thinks that this development is possible Be a condition In the following months, the price increase increased to $0.21. Mikibul Krypto shared a similar thesis though. is not Defining the right target in the near future.

$DOGE has broken out of a 6-month downtrend.

pic.twitter.com/F1OjrePMq6 has started.

— MikybullCrypto (@MikybullCrypto) September 26, 2024

Chip is another famous individual. of Veteran businessman Peter Brandt. They pointed out that there is a channel failureHe is waiting. Long term chart “Also Constructive”.

DOGE's recent revival coincides with increased whaling activity. According to X user Ali Martinez, they have such big investors It has been purchased More than 1.4 billion coins (worth more than 170 million dollars at current prices) in width of 48 hours.

Welches buying large amounts of DOGE will positively affect the price of MemCoin as it will leave a reduced amount of tokens in circulation. Basic economic principles dictate that the valuation should head north, assuming that demand will maintain or increase its level. Additionally, these actions can be seen as a sign of confidence by smaller players and attract more people (and hence capital) to the ecosystem.

This metric shows the loaded status

in contrast The aforementioned bullsThe Relative Strength Index (RSI) suggests that DOGE may face a pullback soon. The technical analysis tool measures the magnitude of recent price changes to determine overbought or oversold conditions.

It ranges from 0 to 100. A ratio above 70 indicates that MemCoin is overvalued and could lead to an inevitable correction. Anything below 30 indicates a buying opportunity. Currently the RSI ratio It stops More than 80.