【Dogecoin Price Rises 25%, Currently Overbought and Facing Local Peak Risks】
Dogecoin (DOGE) may be at risk of a trend reversal, as 94% of its total supply is in profit, indicating that the market is nearing its peak. When the majority of holders reach profit peaks, it often triggers a "local top," leading to the possibility of slowing gains and trend reversals. Historically, after reaching a peak, DOGE's price often declines due to profit-taking.
Technical indicators also show pressure, with DOGE's Relative Strength Index (RSI) exceeding 70, entering the overbought zone, indicating that bullish momentum has peaked and a pullback may follow. Under overbought signals, holders may start to sell for profits, further intensifying selling pressure, especially when the overall market trend turns unfavorable.
Recently, DOGE rose 25% to $0.19, nearing the key resistance level of $0.20. If it fails to break through, the price may pull back to the support level of $0.17, or even drop to $0.14. The high profit ratio and overbought RSI increase the risk of a pullback.
If the market remains strong, DOGE may break through the $0.20 resistance level, continuing its upward trend and further increasing, invalidating bearish expectations.