Dogecoin price fell by 2% during trading on Sunday, reaching a level of $0.141. This slight pullback, following last week’s strong recovery, gives buyers a chance to regain momentum. The recent rally was sparked by billionaire Elon Musk’s mention of DOGE during a Trump campaign event, so higher prices may not be sustainable.
Is Dogecoin price overbought after 30% weekly spike?
“Uptober” recently returned to the crypto market as the leading digital asset, Bitcoin, is hurtling toward $70,000. Among the top altcoins, Dogecoin price showed high momentum of 42.2% from $0.103 to $0.145.
Elon Musk’s influence largely drove this recovery after Trump mentioned “DOGE” during his Pennsylvania campaign. Additionally, Dogecoin price prediction shows a decisive breakout from the symmetrical triangle pattern resistance trend line that has remained in place since August 2024.
The chart setup triggered a steady consolidation that resonated between two converging trend lines with the aim of restoring bullish momentum. However, the coin price has strayed too far from the exponential moving average, indicating that buyers are extending the recovery trend too much and a correction is needed.
At the time of writing, DOGE price was trading at $0.14 and the market cap had risen to $20.68 billion. Therefore, a potential pullback could cause the asset to drop by 12% and retest the $130 triangle resistance breakout.
DOGE/USDT -1d chart
SHIB MVRV spike gives hints about local market
The 30-day market capitalization-to-realized capital ratio (MVRV) has soared to 14%, according to Santiment data, indicating that short-term traders are taking profits. While this trend may suggest a bullish outlook, positive MVRV ratios often coincide with local market highs as traders typically choose to lock in profits during this period. there is.
This could increase selling pressure and cause a short-term pullback before the market resumes its upward trend.
30 Days MVRV | Santimento
If Dogecoin’s price sustains its recent surge, buyers could see a 50% upside potential close to $2.
Frequently asked questions (FAQ)
Dogecoin’s recent weekly rally of 30% after Elon Musk mentioned DOGE during a Trump campaign event suggests the price may be overbought.
Dogecoin breakout from symmetrical triangle pattern that has been intact since August 2024 marks major trend reversal
A jump in the MVRV ratio to 14% indicates that short-term traders are taking profits and often signals a top in the domestic market.
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Sahil Mahadik
Sahil is a dedicated full-time trader with over 3 years of experience in financial markets. He has a strong grasp of technical analysis and keeps a close eye on daily price movements of top assets and indices. Drawn by his fascination with financial products, Sahil enthusiastically embraced the emerging field of cryptocurrencies and continues to explore opportunities driven by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
