Originally published on: October 23, 2024
Dogecoin, the beloved meme cryptocurrency, is facing a slight downturn after a notable 48% surge earlier this month. As of the latest update, Dogecoin has slipped by over 9.5% from its recent high of $0.149. The current price of DOGE is sitting at $0.135, marking its lowest point in a week.
The dip can be attributed to profit-taking behavior among traders, driven by a rise in risk aversion sentiments in the market. Dogecoin’s price began to decrease after its relative strength index (RSI) crossed above 70, indicating an “overbought” status. This typically triggers a correction phase as traders start to secure their gains.
Historically, whenever Dogecoin’s RSI ventured into overbought territory, sharp price corrections followed. For example, in late September, DOGE experienced a 23.50% drop after a similar overbought RSI reading.
Additionally, Dogecoin is on the verge of a golden cross formation with its key exponential moving averages (EMA). This event, usually seen as a bullish signal for a sustained uptrend, has previously led to price declines after the crossover.
The current market scenario, characterized by rising US Treasury yields, has also contributed to Dogecoin’s downward pressure. As yields increase, reducing the appeal of riskier assets like cryptocurrencies, investors may opt for safer options.
In light of recent trends, DOGE’s downside target for November could be around $0.111. This article does not provide investment advice, so be sure to conduct your own research before making any financial decisions. Stay informed with our Markets Outlook newsletter for more insights and updates.