As a seasoned crypto investor who has witnessed the rollercoaster ride that is the cryptocurrency market, I find myself cautiously optimistic about the recent surge of Dogecoin. The 30% rally in seven days is undeniably impressive, but the sell signal flashing from the TD Sequential indicator has me raising an eyebrow.
Recently, there’s been an interesting development with Dogecoin. Following a significant 30% increase over the past week, it’s currently displaying signs that suggest a potential correction may be imminent.
In simple terms, the cost of Dogecoin has experienced an unexpected surge in October, catching off-guard many investors who had been waiting on the sidelines. Yet, crypto analyst Ali Martinez proposes that the meme currency could experience a brief price drop before resuming its upward trend in the near future.
His perspectives are based on the signals given by the TD Sequential indicator, a well-recognized technical instrument used to pinpoint potential market exhaustion stages.
Dogecoin Might Be Overbought
In a recent post on X, Martinez highlighted the TD Sequential setup on the Dogecoin/TetherUS daily candlestick chart. This analysis reveals that Dogecoin is currently experiencing its ninth consecutive bullish close on the daily candlestick, aligning with the ninth count by the TD Sequential indicator. While this sustained surge in the Dogecoin price has been impressive, it also indicates that the meme coin may be reaching a pivotal moment where a price retracement could occur.
As a crypto investor, I’m sounding an extra dose of caution here. The sell signal I’m seeing lines up with a freshly established overbought situation for Dogecoin. The Relative Strength Index (RSI) indicates that the recent buying surge has propelled Dogecoin well into the overbought territory, suggesting it might be time to consider selling or at least trimming positions.
Currently, as I type this, the RSI 14 close stands at a high of 75.80, reaching a peak of 78.36 – its highest point since March. This overbought state implies that the current buying spree might not be sustainable, increasing the possibility of a correction happening quite soon.
Is It Time To Sell DOGE?
Martinez’s insights underline the unpredictable nature of Dogecoin as we approach the new week. At the moment of his assessment, Dogecoin was being exchanged at approximately $0.14575. However, by the time this text is written, Dogecoin has dropped to $0.1424, representing a 2.3% decrease over just a few hours. Despite this dip, the meme currency has managed a 29% increase in its value over the past week.
Nonetheless, it is crucial to remain patient with the Dogecoin outlook, especially as the RSI is now pointing to an overbought condition. On the other hand, Dogecoin isn’t the only cryptocurrency in overbought condition, as the entire market is now in a greed condition, according to the Fear and Greed Index.
If the 24-hour adjustment for DOGE continues throughout the weekend, there’s a possibility it might lead to a quick dip below $0.14 and potentially a revisit to the $0.13 range in the near future.
The buzz and chatter about Dogecoin remains at its peak since March, indicating that any corrections could be short-lived, and there’s a strong possibility the upward trend will continue as we enter a new week. As per one crypto expert, Dogecoin is poised for a price surge with potential gains exceeding 400%.
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2024-10-20 21:04