Dogecoin fell 2% in trading on Sunday to $0.141. The slight decline follows a strong rally last week, giving buyers a chance to regain momentum. The recent rally was fueled by billionaire Elon Musk mentioning “DOGE” at a Trump campaign event and may therefore lack the sustainability to rally.

Is Dogecoin Price Overbought After 30% Weekly Surge?

'Uptober' has recently returned to the crypto market as the leading digital asset, Bitcoin, surged to $70,000. Among the top altcoins, Dogecoin price showed a strong upward momentum from $0.103 to $0.145, a growth of 42.2%.

Elon Musk's influence largely fueled this rally after he mentioned “DOGE” at a Trump campaign event in Pennsylvania. Furthermore, the Dogecoin price prediction suggests a decisive breakout from the resistance trendline of the symmetrical triangle pattern that has been intact since August 2024.

The chart setup promotes a steady consolidation between two converging trendlines, aiming to restore bullish momentum. However, the coin price has extended too far below the Exponential moving average, indicating that buyers have overextended the recovery trend, requiring a correction.

At press time, DOGE was trading at $0.14, while its market cap had risen to $20.68 billion. Therefore, a potential pullback could see the asset fall 12% to retest the breached triangle resistance at $130.

SHIB MVRV Spike Hints at Local Market Top

According to Santiment data, the 30-day Market Cap to Realized Capitalization (MVRV) ratio spiked to 14%, indicating that short-term traders are taking profits. While this trend may suggest a bullish outlook, positive MVRV ratios often coincide with local market tops, as traders often choose to take profits during these periods.

This could increase selling pressure and cause a short-term pullback before the market resumes its uptrend. If the dogecoin price maintains its recent upward momentum, buyers could push the price closer to $2, representing a potential upside of 50%.

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