Dogecoin Flashes Sell Signal After 30% Rally – Time To Sell?
October 20 2024 - 2:00PM
NEWSBTC
In a notable turn of events, meme coin Dogecoin is now flashing a
sell signal for corrections ahead after a 30% rally in seven days.
The Dogecoin price has been on an unprecedented rally in October,
taking many investors who have been on the sidelines by surprise.
However, according to a take by crypto analyst Ali Martinez, the
meme coin might actually undergo some price correction in the short
term before a continuation of the uptrend. Related Reading: Could
Bitcoin Break $100,000? Analysts Predict 6-Figure Milestone His
insights are grounded on the signal provided by the TD Sequential
indicator, a technical tool known for identifying market exhaustion
points. Dogecoin Might Be Overbought In a recent post on X,
Martinez highlighted the TD Sequential setup on the
Dogecoin/TetherUS daily candlestick chart. This analysis reveals
that Dogecoin is currently experiencing its ninth consecutive
bullish close on the daily candlestick, aligning with the ninth
count by the TD Sequential indicator. While this sustained surge in
the Dogecoin price has been impressive, it also indicates that the
meme coin may be reaching a pivotal moment where a price
retracement could occur. Adding to the caution, this sell signal
coincides with a newly established overbought condition for
Dogecoin. The Relative Strength Index (RSI) has shown that the
recent buying momentum has pushed Dogecoin deep into the overbought
territory. At the time of writing, the RSI 14 close sits at
an elevated 75.80, having recently peaked at 78.36, which is its
highest level since March. This overbought condition suggests that
the buying frenzy may be unsustainable, raising the likelihood of a
pullback very soon. Is It Time To Sell DOGE? Martinez’s
observations serves as a crucial reminder of Dogecoin’s volatility
leading into the new week. At the time of his analysis, Dogecoin
was trading at $0.14575. However, at the time of writing, Dogecoin
has fallen to $0.1424, translating into a 2.3% decline in the few
hours. Despite this, the meme coin is still on a 29% gain in the
past seven days. Nonetheless, it is crucial to remain patient with
the Dogecoin outlook, especially as the RSI is now pointing to an
overbought condition. On the other hand, Dogecoin isn’t the only
cryptocurrency in overbought condition, as the entire market is now
in a greed condition, according to the Fear and Greed Index.
If the 24-hour correction for DOGE were to extend for the rest of
the weekend, it could cascade into a break below $0.14 in the short
term and a return into $0.13 territory. Related Reading: TRON
Market Cap Hits Nearly $14 Billion On Strong Revenue Growth Crowd
attention and discussion surrounding Dogecoin remain at their
highest level since March. This suggests that any corrections may
be temporary, and there is a high chance for the uptrend to resume
as the new week unfolds. According to one crypto analyst, Dogecoin
is on track for a price rally with a return of over 400%. Featured
image from Medium, chart from TradingView
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