Why did Dogecoin fall today?
Dogecoin fell back after rising today, as some traders took advantage of the "Trump market" and ran away.
Dogecoin (DOGE) rose to a five-month high before, and now it has fallen back. It seems that everyone is in a hurry to withdraw after making some money because of Trump's incident.
DOGE price has risen too much
DOGE fell about 14% from its high of $0.218 to only $0.188 on November 7. The pullback of this popular meme coin occurred after its daily relative strength index (RSI) exceeded 70, which is the "overbought" zone.
When the RSI enters this zone, it means that DOGE has risen too much and needs to calm down. It may pull back in the short term.
The current RSI high of 74.91 is a little lower than 79.57 on October 9. At that time, Dogecoin rose more than 22%, but the price and popularity were a bit mismatched.
This mismatch may mean that the momentum behind the price increase is almost gone. DOGE prices are still rising, but the RSI drops, which means that there are fewer buyers, or the buying pressure can no longer be sustained in the short term.
Dogecoin futures market panics
When Dogecoin fell today, the futures market also panicked.
After Trump's incident, the total liquidation of DOGE was about 63.83 million US dollars, and the liquidations on both sides were similar.
This shows that the market is very unstable, and the price of Dogecoin has fluctuated greatly, which makes both bulls and bears very uncomfortable.
Such ups and downs may make traders either excited or scared, depending on their risk tolerance. As a result, after the price has risen sharply, many people are eager to cash out, just like today.
Dogecoin may adjust sharply
Dogecoin fell today because it tried to hit a key resistance level before and failed, and now it has begun to pull back.
Since November 2021, this resistance level (marked in red) has been the ceiling of Dogecoin. If it breaks through, it will rise sharply, and if it fails to break through, it will pull back. Today is the 15th time I tried, but it still doesn't work.
Recently I am planning to ambush a potential coin that is ready to explode. It is still very easy to double it. At the same time, I am also planning to find some potential coins to hold by the end of the year. It is expected that there will be no problem with more than 10 times the space. If you want to keep up, leave a message, follow, like, and share for free.
