Earlier in November, Dogecoin skilled a fast ascent to new value highs, driving its Relative Energy Index (RSI) into the overbought zone. Nevertheless, a crypto analyst revealed that the favored meme coin has formally exited this overbought vary following its latest pullback beneath $0.4. This new shift may sign the potential for an additional vital surge within the Dogecoin value.
Dogecoin Exits Overbought Zone, Makes Means To $0.54
In line with Dealer Tardigrade, a crypto analyst on X (previously Twitter), the Dogecoin value has formally exited its overbought zone, indicating the potential for an uptrend. The analyst has predicted that DOGE may rise from its present value of $0.41 to $0.54.
Within the earlier month, Dogecoin rose sharply to $0.48, pushed by the optimistic shift in market sentiment following Donald Trump’s victory within the 2024 United States (US) Presidential election. This fast value surge had pushed Dogecoin’s RSI into the overbought zone, indicating that the meme coin had risen too shortly and will face a pullback.
After experiencing the anticipated value correction, DOGE’s RSI eased again to 50, down from a peak of over 90, in line with the analyst’s chart. Sometimes, an RSI of fifty suggests a impartial place, signifying no sturdy overbought or oversold indicators. Alternatively, an RSI that exceeds the 70 threshold signifies that an asset is perhaps overbought or overpriced.
Sharing a picture evaluating two Dogecoin value charts, Dealer Tardigrade highlighted related value actions and RSI behaviors. In the precise chart, the analyst noticed a robust upward motion within the Dogecoin value, which precipitated its RSI to surge into the overbought zone. Following a short pullback, DOGE’s RSI dropped to 50, setting the stage for a serious value rally to new highs.
The left chart, reflecting Dogecoin‘s present value motion, reveals that the meme coin has moved out of the overbought zone. Dealer Tardigrade believes {that a} value rally much like the one noticed in the precise chart may happen at any second. Consequently, the analyst has set a brand new bullish goal for DOGE, anticipating a surge to $0.54
Dogecoin Whales Purchase The Dip
The latest pullback within the Dogecoin value has did not discourage whales from accumulating extra of the asset. Whereas DOGE continues consolidating beneath earlier highs, giant holders stay energetic in shopping for, viewing the lower cost as a possible shopping for alternative.
Crypto analyst Ali Martinez revealed in an X submit that DOGE whales purchased a staggering 210 million DOGE tokens throughout its latest value correction. At a present value of $0.41, this is able to imply that the whales spent roughly $86.1 million.
With demand for Dogecoin nonetheless rising, it may point out that whales are assured within the meme coin’s potential for additional value positive factors. Prime analysts like Martinez have additionally shared optimistic projections for DOGE, suggesting {that a} rally to $3 and even as excessive as $18 is inside attain.
Featured picture created with Dall.E, chart from Tradingview.com
