This article is also available in Spanish.
In a remarkable turn of events, meme Dogecoin is now flashing a sell signal for upcoming corrections after a 30% surge in seven days.
Dogecoin price has On an unprecedented journey in October, surprising many investors who remained on the sidelines. However, according to cryptocurrency analyst Ali Martinez, the meme coin may actually undergo some short-term price correction before it is released. Continuation of the upward trend.
Related reading
His ideas are based on the signal provided by the TD Sequential indicator, a technical tool known for identifying points of market exhaustion.
Dogecoin may be overbought
In a Last post on XMartinez highlighted a sequential TD setup on the Dogecoin/TetherUS daily candlestick chart. This analysis reveals that Dogecoin is currently seeing its ninth consecutive bullish close in the daily candle, which is in line with the ninth count by the TD Sequential indicator. While this continued rise in the price of Dogecoin has been impressive, it also indicates that the meme coin may be reaching a pivotal moment where a price bounce could occur.
Adding to the warning, this sell signal coincides with a newly created overbought condition for Dogecoin. The Relative Strength Index (RSI) showed that recent buying momentum has pushed Dogecoin deep into the overbought zone.
At the time of writing, the RSI 14 close is at a high of 75.80, having recently peaked at 78.36, its highest level since March. This overbought condition indicates that the buying frenzy may not be sustainable, raising the possibility of a pullback very soon.
Is it time to sell Doji?
Martinez’s remarks serve as an important reminder of Dogecoin’s volatility in the new week. At the time of its analysis, Dogecoin was trading at $0.14575. However, at the time of writing, Dogecoin has fallen to $0.1424, which translates to a 2.3% decline in the few hours. Despite this, the meme coin still gained 29% in the past seven days.
However, it is important to be patient with the Dogecoin forecast, especially since the RSI is now indicating an overbought condition. On the other hand, Dogecoin is not the only cryptocurrency in an overbought state, as the entire market is now in a greedy state, according to the Fear and Greed Index.
If the 24-hour DOGE correction extends for the rest of the weekend, it could break below $0.14 in the short term and return to the $0.13 area.
Related reading
The interest of the masses and the discussion around Dogecoin is still at their fingertips Highest level since March. This indicates that any corrections may be temporary, and there is a great chance that the uptrend will resume with the start of the new week. According to one cryptocurrency analyst, Dogecoin is on the right track For rising prices with a return of more than 400%.
Featured image from Medium, chart from TradingView