- Dogecoin’s RSI at 80.56 signals overbought conditions, indicating increased chances of a near-term price pullback.
- Trading volume rose by 3.4% as investors adjusted positions following DOGE’s 4% daily decline from its recent peak.
- The broader crypto market’s dip, led by Bitcoin’s 0.8% loss, contributed to weakening sentiment around Dogecoin.
Dogecoin (DOGE) has entered a correction phase after a sharp upward movement that saw its value rise over 53% in the third quarter. The price reached a recent high of $0.2868 before losing steam and slipping to $0.2644, down approximately 4% in the last 24 hours, according to CoinMarketCap data.
Technical indicators are now reflecting a weakening bullish grip. The Relative Strength Index (RSI) for DOGE climbed to 80.56, which suggests that the asset entered an overbought territory. At this level, assets often face downward pressure due to potential profit-taking and cooling investor interest.
Bollinger Bands Indicate High Volatility Range
DOGE’s price currently hovers close to its upper Bollinger Band, which stands at $0.2751. This upper limit signals that the asset may have extended beyond typical volatility thresholds. The wide range of prices in the middle and lower bands, as supported by prices placed at 0.2050 and 0.1349, respectively, proves that this shows a further possibility of it moving downwards.
The trading volume has shown a minor jump of 3.4% to stand at 6.35 billion dollars over the past day. But the mood seems wary, as others of the traders are probably cashing in. The crypto market as a whole has not shown a good day either, with Bitcoin declining by 0.8% and the market in general by 1.4%. The close relationship with Bitcoin increased the pressure on the price of Dogecoin.
Despite the current pullback, DOGE remains up over 70% over the past 30 days, with the rally starting on June 22. The recent climb positioned the meme coin to challenge a bearish trend that lasted over six years. However, the ongoing correction could delay or hinder that momentum unless market conditions shift again.
