Earlier in November, Dogecoin skilled a fast ascent to new worth highs, driving its Relative Strength Index (RSI) into the overbought zone. Nonetheless, a crypto analyst revealed that the favored meme coin has formally exited this overbought vary following its current pullback beneath $0.4. This new shift may sign the potential for an additional vital surge in the Dogecoin price.
Dogecoin Exits Overbought Zone, Makes Means To $0.54
Based on Dealer Tardigrade, a crypto analyst on X (previously Twitter), the Dogecoin worth has formally exited its overbought zone, indicating the potential for an uptrend. The analyst has predicted that DOGE may rise from its present worth of $0.41 to $0.54.
Within the earlier month, Dogecoin rose sharply to $0.48, pushed by the constructive shift in market sentiment following Donald Trump’s victory within the 2024 United States (US) Presidential election. This fast worth surge had pushed Dogecoin’s RSI into the overbought zone, indicating that the meme coin had risen too rapidly and will face a pullback.
After experiencing the anticipated price correction, DOGE’s RSI eased again to 50, down from a peak of over 90, in accordance with the analyst’s chart. Usually, an RSI of fifty suggests a impartial place, signifying no robust overbought or oversold indicators. Then again, an RSI that exceeds the 70 threshold signifies that an asset may be overbought or overpriced.
Sharing a picture evaluating two Dogecoin worth charts, Dealer Tardigrade highlighted related worth actions and RSI behaviors. In the appropriate chart, the analyst noticed a powerful upward motion within the Dogecoin worth, which prompted its RSI to surge into the overbought zone. Following a short pullback, DOGE’s RSI dropped to 50, setting the stage for a significant price rally to new highs.
The left chart, reflecting Dogecoin‘s current price action, reveals that the meme coin has moved out of the overbought zone. Dealer Tardigrade believes {that a} worth rally just like the one noticed in the appropriate chart may happen at any second. Consequently, the analyst has set a brand new bullish target for DOGE, anticipating a surge to $0.54
Dogecoin Whales Purchase The Dip
The current pullback within the Dogecoin worth has did not discourage whales from accumulating extra of the asset. Whereas DOGE continues consolidating beneath earlier highs, massive holders stay lively in shopping for, viewing the lower cost as a possible shopping for alternative.
Crypto analyst Ali Martinez revealed in an X post that DOGE whales purchased a staggering 210 million DOGE tokens throughout its current worth correction. At a present worth of $0.41, this might imply that the whales spent roughly $86.1 million.
With demand for Dogecoin nonetheless rising, it may point out that whales are assured within the meme coin’s potential for additional worth positive factors. Prime analysts like Martinez have additionally shared optimistic projections for DOGE, suggesting {that a} rally to $3 and even as excessive as $18 is inside attain.
Featured picture created with Dall.E, chart from Tradingview.com
Trending Merchandise
