Dogecoin (DOGE) Price Up 15% Daily, But Is A Correction On The Way?

TL;DR

The price of Dogecoin rose to a five-month high, likely fueled by Elon Musk’s social media interaction and discussion of a possible “Department of Government Efficiency (DOGE)” initiative. Despite bullish sentiment, the asset’s RSI at 78 suggests it may be overbought, raising the potential for a near-term correction. DOGE bull run

The largest meme coin in terms of market cap continues its impressive performance. Its price increased by more than 15% in the last 24 hours, currently trading at $0.1646 (according to CoinGecko data). Several hours ago, DOGE reached almost $0.17, the highest mark seen since the end of May this year.

Price DOGE, Source: CoinGecko

His manifestation could be attributed to Elon Musk’s interaction on X. On October 28, the Tesla CEO posted an interesting image depicting him flexing during a public speech. The bottom of the photo showed the Shiba Inu breed (which resembles the DOGE logo) doing the same pose all muscles.

Musk also continues to talk about establishing a potential Department of Government Efficiency (DOGE) should Donald Trump win the US presidential election. The division would aim for fair taxation for Americans and would be headed by the head of Tesla.

Crypto X is full of analysts who believe that Dogecoin’s recent resurgence is just a warm-up before a gigantic price increase. An example is Mikybull Crypto, who said:

$DOGE God is imminent from now on.

The current rally is just a warm-up for a bigger move. pic.twitter.com/Fnz06XIiu6

— Mikybull Crypto (@MikybullCrypto) October 29, 2024

X user Ali Martinez was also upbeat. Earlier this week, he predicted a rise to $0.175 if the meme currency broke above the $0.143 resistance zone. As mentioned above, DOGE currently trades for much more than the represented brand.

A possible withdrawal?

Despite the prevailing optimism in the crypto space, some indicators suggest that Dogecoin may experience a painful correction in the near term.

An example is the relative strength index (RSI), which measures the speed and change of price movements. It ranges from 0 to 100, with readings above 70 indicating that the asset has entered overbought territory and could be ready for a pullback.

The RSI is currently set at 78.

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