Is Super Bullish Dogecoin (DOGE) Price Prediction Too Bullish?

TL; DR

Dogecoin is up 10% on the day, with speculation linking the rally with Elon Musk, while analysts predict further gains. Although it is rising, an RSI above 70 suggests that the coin is overbought and may be due for a pullback.

Is DOGE ready for Skyrocket?

The leading meme coin is one of the top performers in the crypto sector today (October 16) with a 10% price increase. He currently It trades just south of $0.13, while the market capitalization It has passed 18.6 billion dollars.

DOGE's recent rally may be the reason for this. General industrial revival, where Bitcoin (BTC) It has passed 67,500 dollars On the other hand, other popular meme coins are showing modest price increases as they struggle to keep pace.

As such, some industry participants have suggested that the resurgence of Dogecoin may have something to do with Elon Musk. For those who don't know, the CEO of Tesla And one One of the richest people on the planet is a big fan of meme coin, often extolling its benefits. X user Bluntz was one of those who supported that theory:

$doge was in a mental state today and all other memes were slipping away.

I feel that it is something related to cooking and a long time

pic.twitter.com/2yyNiWnfQA

— Bluntz (@Bluntz_Capital) October 16, 2024

Many analysts say DOGE has yet to make headlines due to the price explosion. X user Ali Martinez presented A chart showing that the valuation could rise to a high of $10 in the coming months.

Worth mentioning.even if Such a rally would require Dogecoin's market cap to jump above $1.4 trillion, making the forecast highly unlikely. Some people commenting on the post shared their skepticism, as they described the prophecy. easily impossible

$doge is going mental today while all other memories are slipping away.

I feel that it is something related to cooking and a long time

pic.twitter.com/2yyNiWnfQA

— Bluntz (@Bluntz_Capital) October 16, 2024

Cause of depression

While DOGE has shown impressive growth over the past 24 hours, one technical indicator points to an impending correction. Namely, this is the Relative Strength Index (RSI), a ratio It has passed 70.

The indicator measures the speed and volatility of price movements, with readings below 30 indicating that the asset is in oversold territory and may become so. lead For a parade.

On the other hand, anything above 70 generally indicates that DOGE is overbought and could be due for a short-term pullback.