TL;DR
Dogecoin rose 10% daily on speculation linking the rally to Elon Musk, but analysts predict further upside potential. Despite the rally, the RSI above 70 suggests that the coin is overbought and could be due for a decline.
Is DOGE ready to soar?
The leading meme coin is one of the top performers in the cryptocurrency sector today (October 16), posting a 10% price surge. It currently trades just south of $0.13, but has a market cap of over $18.6 billion.
DOGE price, source: CoinGecko
DOGE’s recent rally can be attributed to an industry-wide resurgence that saw Bitcoin (BTC) rise above $67,500. On the other hand, other popular meme coins have struggled to keep pace and have witnessed more gradual price increases.
As such, some industry insiders have suggested that Dogecoin’s resurgence may have something to do with Elon Musk. For the uninitiated, Tesla CEO and one of the richest people on the planet is a big supporter of meme coins, often extolling their merits. X user Bluntz was among those who supported that theory.
$Doge While all the other memes are going down, I’m feeling mentally pushed today.
I’m cooking something and I can’t help but think it’s Elon related.
— Bruntz (@Bruntz_Capital) October 16, 2024
Multiple analysts claimed that DOGE has yet to experience a price explosion and hit the headlines. X user Ali Martinez presented a graph showing that the valuation could skyrocket to an all-time high of $10 within a few months.
However, it’s worth mentioning that such a rise would require Dogecoin’s market cap to jump above $1.4 trillion, making this prediction highly unlikely. Some people who commented on this post shared their skepticism, stating that this prediction is simply impossible.
$Doge While all the other memes are going down, I’m feeling mentally pushed today.
I’m cooking something and I can’t help but think it’s Elon related.
— Bruntz (@Bruntz_Capital) October 16, 2024
bearish factors
Despite DOGE’s impressive rise over the past 24 hours, one technical indicator points to an upcoming correction. So this is the Relative Strength Index (RSI) and its ratio is over 70.
This indicator measures the speed and change of price movements, and a reading below 30 suggests that the asset is in oversold territory and may be heading up.
On the other hand, a reading above 70 generally indicates that DOGE is overbought and could fall in the short term.
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