Dogecoin No Longer Overbought Amid Pullback Below $0.4, Here’s What To Expect Next

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As a seasoned researcher with a penchant for analyzing cryptocurrency markets and a knack for predicting trends, I find myself intrigued by the recent developments surrounding Dogecoin. Having closely followed the meme coin’s price action since its inception, I must admit that it never ceases to surprise me with its unpredictable yet fascinating trajectory.

In November earlier on, Dogecoin saw a swift climb to unprecedented prices, pushing its Relative Strength Index (RSI) above the overbought threshold. Yet, an analysis by a cryptocurrency expert indicates that Dogecoin has now moved out of this overbought territory after it retreated below $0.4. This change might imply a possibility for another substantial increase in Dogecoin’s price value.

Dogecoin Exits Overbought Zone, Makes Way To $0.54

As reported by crypto expert Trader Tardigrade (previously known as Twitter’s analyst), the Dogecoin price is now out of the overbought territory, suggesting a possible upward trend may occur. This expert predicts that the value of DOGE might increase from its current level of $0.41 to around $0.54.

Last month, I witnessed an unprecedented spike in Dogecoin’s value, reaching $0.48. This bullish trend was fueled by the optimistic change in market sentiment following Donald Trump’s win in the 2024 U.S. Presidential election. However, this swift price escalation propelled Dogecoin into an overbought territory on the Relative Strength Index (RSI), suggesting that the meme coin had climbed too rapidly and might encounter a correction or pullback.

Following the expected price adjustment, the Relative Strength Index (RSI) of DOGE moved down to 50 on the analyst’s graph, having been as high as more than 90 previously. Normally, when the RSI is at 50, it signals a balanced position, implying no significant overbought or oversold conditions. However, if the RSI surpasses the 70 level, it could mean that the asset in question might be overvalued or overbought.

Trader Tardigrade recently posted a side-by-side comparison of Dogecoin’s price charts, noting striking similarities in their trends and Relative Strength Index (RSI) patterns. In one chart, he pointed out a notable uptrend in the Dogecoin price that propelled its RSI into an overbought state. After a short correction, the DOGE’s RSI dipped to 50, paving the way for a significant price surge towards fresh record highs.

The graph on the left, depicting Dogecoin’s current market behavior, indicates that it has moved out of the overbought state. Cryptocurrency trader Tardigrade suspects a rally comparable to the one shown in the graph on the right might happen soon. As a result, this analyst has established a fresh bullish goal for DOGE, predicting a potential increase up to $0.54.

Dogecoin Whales Buy The Dip

As a crypto investor, I’ve noticed that despite the recent dip in Dogecoin’s price, whales have been undeterred and continue to hoard more of this asset. Even though DOGE is consolidating below its previous peaks, large-scale investors are actively purchasing, seeing the reduced price as a promising buying opportunity.

In a recent post on the platform X, crypto expert Ali Martinez disclosed that large Dogecoin holders (DOGE whales) purchased an impressive 210 million DOGE coins during a recent price drop. Given the current price of $0.41 per token, these whales spent approximately $86.1 million.

As interest in Dogecoin continues to grow, it might signal that major investors (whales) are certain about the meme coin’s ability to bring about more price increases. Notably, experts such as Martinez have voiced optimistic forecasts for DOGE, implying that a surge towards $3 or potentially even $18 is plausible.

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2024-12-13 00:11