The Dogecoin price dipped 2% during Sunday’s trading session to reach the $0.141 level. This slight pullback follows a strong recovery last week, giving buyers a chance to regain momentum. The recent rally was driven by Billionaire Elon Musk’s mention of “D.O.G.E.” during a Trump campaign event and, therefore, could lack sustainability for a higher price.
Is Dogecoin Price Overbought After a 30% Weekly Surge?
The ‘Uptober’ has recently returned to the crypto market as the leading digital asset, Bitcoin, hasting towards $70,000. Among top altcoins, the Dogecoin price showed a high momentum from $0.103 to $0.145, for 42.2% growth.
Elon Musk’s influence mainly drove this recovery after he mentioned “D.O.G.E.” during Trump’s Pennsylvania campaign event. Furthermore, the Dogecoin price prediction shows a decisive breakout from the resistance trendline of a symmetrical triangle pattern intact since August 2024.
The chart setup drove a steady consolidation resonating between two converging trendlines, meant to recuperate the bullish momentum. However, the coin price stretched too far from the Exponential moving average, indicating the buyers have overextended the recovery trend, which needs a correction.
By press time, the DOGE price had traded at $0.14, while the market cap had rallied to $20.68 billion. Therefore, a potential pullback could plunge the asset 12% down to retest the breach triangle resistance at $130.
SHIB MVRV Spike Hints at Local Market Top
According to Santiment data, the 30-day Market Cap to Realized Cap ratio (MVRV) spiked to 14%, indicating that short-term traders are experiencing profit. While this trend may hint at a bullish outlook, the positive MVRV ratio often coincides with local market tops, as traders typically choose to book profits during these periods.
This could increase selling pressure and trigger a short-term pullback before the market resumes its upward trend.
If the dogecoin price managed to sustain its recent breakout, the buyers could drive a rally to nearly $2 level, accounting for 50% growth potential.
Frequently Asked Questions (FAQs)
The recent 30% weekly surge in Dogecoin, driven by Elon Musk’s mention of “D.O.G.E.” during a Trump campaign event, suggests the price may be overbought
The Dogecoin breakout from the symmetrical triangle pattern, which had been intact since August 2024, signals a major trend reversal
The MVRV ratio spiking to 14% indicates that short-term traders are experiencing profits, often a signal of a local market top
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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