Highlights:
- Dogecoin price has tumbled 1% as the meme coin breaks through the $0.14 mark.
- Into The Block data shows that 80% of DOGE holders are in profit, while only 16% have incurred losses.
- Traders and investors should keenly watch for the RSI’s rejection from the overbought region to time the reversal in the DOGE market.
The leading meme coin by market cap has plunged 1.29% today, with the Dogecoin price exchanging hands at $0.1423. Its trading volume has notably dwindled 8.56% to $1.79 billion. Despite the plunge, DOGE is now up 24% in a week, 34% in a month, and 135% in a year.
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Dogecoin’s price has drawn the market’s attention as it has broken through the $0.14 mark. This phenomenon movement is accompanied by a remarkable increase in net inflows from large holders, indicating positive sentiment in the market towards Dogecoin.
Moreover, data from Into The Block indicates that 80% of DOGE holders are in profit at the current price levels. This is a significant bullish signal as it reveals that the price may rebound amid this strong support from traders.
Meanwhile, an analyst has warned of potential retracements in the Dogecoin price, as the meme coin portrays some overbought conditions.
📊 #Dogecoin has been riding waves lately!
As seen in the chart, #Doge bounced from a strong support near $0.08052, pushing upward towards key resistance levels of $0.14696. 🔥
The price surged, but beware of overbought signals at this level. 📈
Is this Vault approved? pic.twitter.com/5OaiQ5Auza
— Mr Vault (@ExpertVaultPros) October 22, 2024
Dogecoin Statistical Data
Based on CoinmarketCap data:
- DOGE price now – $0.1423
- Trading volume (24h) – $1.79 billion
- Market cap – $20.78 billion
- Total supply – 146.47 billion
- Circulating supply – 146.47 billion
- DOGE ranking – #8
The Dogecoin’s technical outlook turned bullish following the token’s rebound from support at $0.1114. After DOGE reclaimed the 50-day Simple Moving Average (SMA) (green) and the 200-day SMA (blue), turning them into immediate support levels, momentum rallied behind the leading meme coin by market cap, which propelled the price to $0.1423.
Why a Correction is Imminent In the DOGE Market
The bulls uphold a bullish picture as they aim to propel the price to $1. Meanwhile, the Dogecoin price seems exhausting the uptrend, which might give way to the bears.
Cementing the positive outlook is the Relative Strength Index (RSI), which has jumped to the 70-overbought region, currently at 73.07. With the meme coin in the overbought region, it is prudent to watch out for a retracement because its position above 70 suggests that a correction is imminent.
Therefore, traders should be cautious as the Relative Strength Index (RSI) pushes into the overbought region. A retracement is likely to follow to allow Dogecoin to sweep through more liquidity as already sidelined investors rush to buy lower-priced DOGE tokens.
Meanwhile, the Moving Average Convergence Divergence (MACD) has jumped into the positive territory, upholding a buy signal. This is evident as the MACD indicator in blue has flipped above the orange signal line, suggesting a bullish thesis. Moreover, the green histograms are increasing, suggesting intense buying pressure. Traders are inclined to buy DOGE unless the MACD changes.
Dogecoin Price Outlook
The DOGE price in the daily chart timeframe upholds a splendid bullish muscle, tilting the odds toward the buyers. However, with the meme coin overbought, it is prudent to watch out for the RSI’s rejection from the overbought region to time the reversal. In such a case, 0.1289 will be in line to absorb the potential selling pressure.
On the flip side, if the bulls collect enough liquidity, they could resume a meaningful uptrend, breaking above the $0.14 mark. In a highly bullish case, DOGE could rally to $0.18 in the coming days.
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