Dogecoin Sells After 30% Rally Time to sell?
After a 30% surge in seven days, meme currency Dogecoin is flashing a sell signal for corrections.
Investors who were waiting were surprised by Dogecoin's spectacular gain in October. According to crypto researcher Martinez, the meme currency may temporarily correct before continuing its climb.
His observations are based on the TD Sequential indicator, which identifies market fatigue moments.
Possible Dogecoin Overbuy
The daily candlestick shows Dogecoin's ninth straight bullish close, matching the TD Sequential indicator's ninth count. While Dogecoin's persistent rise has been amazing, it suggests a price pullback may be imminent.
This sell signal corresponds with Dogecoin's current overbought situation, adding caution. The Relative Strength Index (RSI) shows that Dogecoin is overbought due to recent purchasing.
At 75.80, the RSI 14 close is high, having peaked at 78.36 in March. This overbought position shows the purchasing frenzy may be unsustainable, indicating a quick drop.
Martinez's remarks underscore Dogecoin's volatility this week. According to his calculations, Dogecoin was worth $0.14575. Dogecoin is now at $0.1424, down 2.3% in a few hours. Meme coin is up 29% in seven days despite this.
As the RSI indicates an overbought position, Dogecoin investors must stay patient. The Fear and Greed Index shows that the whole cryptocurrency market is greedy, including Dogecoin.
If DOGE's 24-hour drop continues into the weekend, it might break below $0.14 and revert to $0.13.
Dogecoin is at its greatest level of interest and conversation since March. This shows that corrections may be brief and that the upswing may continue next week. One crypto researcher predicts a 400% price rise for Dogecoin.
