Dogecoin $DOGE Faces Correction After Stellar November Surge
Dogecoin (DOGE) experienced a remarkable run in November, surging 160% to hit its highest level in nearly three years. However, the momentum slowed as DOGE dropped over 10% on Monday, sparking concerns about a potential breakdown from its uptrend. Despite attempts to hold above the 20-day moving average, sellers pushed the price below the critical $0.40 psychological level.
The Relative Strength Index (RSI) has issued a warning, plummeting from the overbought zone to 51 in a single day. While DOGE formed a higher high on Sunday, the RSI failed to confirm the move, creating a bearish divergence—a common precursor to short-term corrections.
Adding to the bearish sentiment, the MACD on the daily chart shows a downward trend, which traders interpret as a sign of further price declines. On the weekly chart, DOGE has been on an exponential climb since early November, but the current correction may reflect traders taking profits. Analysts suggest this phase could last a few days or weeks before the market stabilizes.
