Super Bullish Dogecoin (DOGE) Price Prediction, But Is It Too Bullish?

TL;DR

Dogecoin rose 10% on the day, with speculation linking the rally to Elon Musk, while analysts predict possible further gains. Despite the rally, its RSI above 70 suggests the coin may be overbought and due for a pullback. Is DOGE ready to fire?

The leading meme coin is among the top performers in the crypto sector today (October 16), posting a 10% price increase. It currently trades south of $0.13, while its market capitalization topped $18.6 billion.

Price DOGE, Source: CoinGecko

DOGE’s latest rally could be attributed to the industry’s general renaissance, where Bitcoin (BTC) broke above $67,500. On the other hand, other well-known meme coins have struggled to keep up, witnessing more modest price increases.

As such, some industry participants suggested that Dogecoin’s resurgence might have some connection to Elon Musk. For the uninitiated, the CEO of Tesla, and one of the richest people on the planet, is a big supporter of the meme currency, often extolling its merits. X user Bluntz was one of those who supported this theory:

$ twelve going mental today while all the other memes have been sliding.

something is cooking and i can’t help but feel it is related to elon

pic.twitter.com/2yyNiWnfQA

— Bluntz (@Bluntz_Capital) October 16, 2024

Several analysts stated that DOGE has yet to make headlines by experiencing a price explosion. X user Ali Martinez presented a chart showing that the valuation could soar to an all-time high of $10 in the coming months.

It’s worth mentioning, however, that such a rally would require Dogecoin’s market cap to jump to more than $1.4 trillion, making the forecast quite unlikely. Some commenters on the post shared the skepticism, describing the prediction as simply impossible:

$ twelve going mental today while all the other memes have been sliding.

something is cooking and i can’t help but feel it is related to elon

pic.twitter.com/2yyNiWnfQA

— Bluntz (@Bluntz_Capital) October 16, 2024

The bearish factor

Despite DOGE’s impressive rise over the past 24 hours, a technical indicator is pointing to an incoming correction. That is, it is the Relative Strength Index (RSI), whose ratio exceeded 70.

The metric measures the speed and change of price movements, with readings below 30 suggesting the asset is in oversold territory and could be headed for a rally.

On the other hand, anything above 70 generally indicates that DOGE is overbought and a short-term pullback could be in the offing.

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