The post Dogecoin Reaches $0.1491 As RSI Flashes Overbought: Is A Correction Coming? appeared on BitcoinEthereumNews.com.

Dogecoin‘s recent price surge to $0.1491 has pushed the Relative Strength Index (RSI) into overbought territory, signaling a potential shift in momentum. As the RSI climbs above 70%, it suggests that the token may be overvalued, raising the possibility of a price correction. As buying pressure slows, market participants are beginning to brace for a corrective move, making this a pivotal moment for DOGE’s price trajectory. This article aims to analyze Dogecoin’s recent rise to $0.1491, with the RSI signaling overbought conditions. It will assess whether the rally has peaked and if a potential decline is imminent, providing insights into key technical indicators, market reactions, and the likelihood of a near-term price correction for DOGE. RSI Hits Overbought Territory: What It Means For Dogecoin On the 4-hour chart, despite trading above the 100-day Simple Moving Average (SMA), Dogecoin’s price is showing signs of a bearish reversal after failing to break above the $0.1491 resistance level. This inability to push past the key level has triggered selling pressure, suggesting that the bullish momentum may be losing steam and that the asset may retrace toward lower support levels, signaling a potential short-term correction in the market. Dgoecoin poised for bearish reversal after failing to break above $0.149 | Source: DOGEUSDT on Tradingview.com Additionally, the 4-hour Relative Strength Index (RSI) is around 80%, well above the 50% threshold, indicating that DOGE is overbought and has experienced strong upward movement. However, this elevated RSI suggests that a pullback may be due to decreasing buying pressure. On the daily chart, DOGE is exhibiting signs of weakness, highlighted by the rejection wick on the current candlestick. This wick indicates that buyers tried to drive the price up but encountered strong selling pressure signaling that the bullish momentum may be weakening. If this trend continues, further downward movement…

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Filed under: News - @ October 19, 2024 11:02 pm