Emily Walker
In early November, Dogecoin saw a sharp rise in price, pushing its Relative Strength Index (RSI) into overbought territory. Recently, a crypto analyst has indicated that Dogecoin has moved out of this overbought zone following a decline below $0.4. This change could pave the way for another major increase in its price.
Dogecoin Moves Past Overbought Zone, Aiming for $0.54
Trader Tardigrade, a crypto expert on X (formerly known as Twitter), states that Dogecoin has officially left the overbought area, hinting at an uptrend potential. The analyst forecasts that DOGE might climb from its current value of $0.41 to $0.54.
Last month, Dogecoin surged to $0.48, spurred by favorable market sentiment following Donald Trump’s win in the 2024 US Presidential election. This rapid increase had raised Dogecoin’s RSI into overbought territory, signaling that the price may have spiked too fast, leading to a possible correction.
After the expected pullback, DOGE’s RSI returned to 50 from a prior peak of over 90, as depicted in the analyst’s chart. Generally, an RSI of 50 indicates a neutral stance, which means there are no strong signals of being overbought or oversold. Conversely, an RSI above 70 suggests that an asset might be overvalued.
Trader Tardigrade shared a comparison of two Dogecoin price charts, illustrating similar patterns in price movement and RSI readings. In the right chart, a notable rise in Dogecoin’s price caused its RSI to climb into the overbought area. Following a short correction, DOGE’s RSI fell to 50, setting the groundwork for a significant price surge to new levels.
The left chart, depicting Dogecoin’s current price behavior, indicates that the meme coin has exited the overbought zone. Trader Tardigrade is optimistic that a rally similar to that showed in the right chart could happen soon. The analyst has set a new bullish target for DOGE at $0.54.
Dogecoin Whales Capitalize on Price Dip
The recent downturn in Dogecoin’s price has not deterred whales from increasing their holdings. While DOGE remains stable under previous highs, significant holders are actively purchasing, perceiving the lower price as a chance to buy.
Crypto analyst Ali Martinez noted in an X post that DOGE whales acquired a remarkable 210 million DOGE tokens during the recent price adjustment. At the current price of $0.41, this translates to an estimated investment of $86.1 million.
The growing demand for Dogecoin suggests that whales are optimistic about the meme coin’s potential for further price increases. Prominent analysts, including Martinez, have previously expressed positive forecasts for DOGE, indicating that price levels of $3 or even $18 could be achievable.