Dogecoin Rally Stalls as Sell Signal Emerges
Dogecoin’s latest upswing is showing signs of exhaustion as technical indicators flash potential warning signals.
After climbing to $0.2367 with an 8% gain in market capitalization over the past week, the meme-inspired cryptocurrency may be due for a pullback.
Overbought Signals Raise Caution
A recent analysis highlighted the TD Sequential indicator flashing a sell signal on the 4-hour chart, suggesting that DOGE could face near-term resistance after its latest rally. Historically, this signal has marked local tops, often preceding short-term corrections.
On the hourly chart, momentum appears stretched. The Relative Strength Index (RSI) has surged to 78, placing DOGE firmly in overbought territory. This increases the probability of profit-taking as traders reassess positions. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is still in positive territory, hinting at strong momentum, though crossovers could develop if selling pressure intensifies.
Key Levels to Watch
Market participants are closely watching support levels around $0.2300 and $0.2250. A breakdown below these zones could push DOGE toward $0.2200, while holding above them may allow the asset to consolidate before any further upside.
Despite the looming risk of a short-term retracement, Dogecoin’s market cap of $35.7 billion underscores continued investor interest. With DOGE ranked eighth among cryptocurrencies, it remains a closely watched asset as traders speculate whether its current rally is just a pause before another leg higher or the beginning of a broader correction.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
