TL;DR
Dogecoin’s price has soared to a five-month high, likely fueled by Elon Musk’s social media interactions and discussion of a possible Department of Government Efficiency (DOGE) initiative. Despite the bullish sentiment, the asset’s RSI is at 78, suggesting it may be overbought, increasing the likelihood of a short-term correction.
DOGE’s Bull Run
The largest meme coin in terms of market capitalization continues its impressive performance. Its price has surged over 15% in the past 24 hours and is currently trading at $0.1646 (according to CoinGecko data). A few hours ago, DOGE hit nearly $0.17, its highest since late May of this year.
DOGE price, source: CoinGecko
The rise can be attributed to Elon Musk’s interactions with X. On October 28, Tesla’s CEO posted an interesting photo depicting him crouching during a speech. The bottom part of the photo shows a muscular Shiba Inu (resembling the DOGE logo) in the same pose.
Musk also continues to talk about the possibility of creating a Department of Government Efficiency (DOGE) if Donald Trump wins the US presidential election. The department aims to tax Americans fairly and will be spearheaded by Tesla’s boss.
Crypto X has many analysts who believe that Dogecoin’s recent resurgence is just a warm-up before a huge price rally. As an example, Mikybull Crypto said:
$Doge God is just around the corner.
The current rally is just a warm-up for a bigger move. pic.twitter.com/Fnz06XIiu6
— Mikybull Crypto (@MikybullCrypto) October 29, 2024
X user Ali Martinez was also bullish. Earlier this week, he envisioned a surge to as high as $0.175 if Memecoin broke above the $0.143 resistance zone. As mentioned above, DOGE is currently trading at a much higher price than the mark depicted.
Is there a possibility of withdrawal?
Despite the prevailing optimism in the cryptocurrency industry, several indicators suggest that Dogecoin may experience a painful correction in the short term.
One example is the relative strength index (RSI), which measures the speed and change of price movements. It varies from 0 to 100, with readings above 70 suggesting the asset is entering overbought territory and may be poised for a pullback.
Currently, RSI is set at 78.
Special Offer (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Receive an exclusive welcome offer of $600 on Binance when you register a new account using this link (more details).
Exclusive offer for 2024 on BYDFi Exchange: Welcome Reward up to $2,888. Register using this link and open a 100 USDT-M position for free!
