Originally published on: October 23, 2024
Dogecoin, the memecoin that captured the attention of the crypto world, is experiencing a minor dip in price after a significant rally earlier this month. The price of DOGE has dropped by over 9.5% from its recent high of $0.149, reaching $0.135, its lowest point in a week.
The recent pullback in Dogecoin’s price is believed to be driven by profit-taking, as investors react to increasing risk-off sentiment in the market. This correction comes after Dogecoin’s relative strength index (RSI) crossed above 70, signaling an “overbought” condition that often leads to a period of consolidation or correction.
Traders are likely securing profits in response to the overbought RSI, as history has shown that similar instances of RSI crossing above 70 have resulted in sharp price declines for Dogecoin. This pattern of profit-taking is consistent with previous market trends.
Additionally, Dogecoin’s key exponential moving averages (EMA) are approaching a golden cross, a bullish signal that typically precedes a sustained uptrend. However, historical data suggests that golden crosses in Dogecoin have not always led to immediate price increases, as early buyers tend to lock in profits, contributing to price declines.
The ongoing price decline in Dogecoin is also coinciding with a surge in US Treasury yields, indicating improved economic conditions and reducing investor appetite for riskier assets like cryptocurrencies. As a result, Dogecoin is facing downward pressure as investors opt for safer, yield-bearing assets.
While the current market conditions may seem uncertain, it’s essential for investors to conduct their own research and make informed decisions when it comes to trading and investing in cryptocurrencies. Stay informed with critical insights and market updates to spot investment opportunities and refine your trading strategies.
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