Dogecoin’s latest upswing is showing signs of exhaustion as technical indicators flash potential warning signals.
After climbing to $0.2367 with an 8% gain in market capitalization over the past week, the meme-inspired cryptocurrency may be due for a pullback.
Overbought Signals Raise Caution
A recent analysis highlighted the TD Sequential indicator flashing a sell signal on the 4-hour chart, suggesting that DOGE could face near-term resistance after its latest rally. Historically, this signal has marked local tops, often preceding short-term corrections.
On the hourly chart, momentum appears stretched. The Relative Strength Index ( RSI ) has surged to 78, placing DOGE firmly in overbought territory. This increases the probability of profit-taking as traders reassess positions. Meanwhile, the Moving Average Convergence Divergence ( MACD ) indicator is still in positive territory, hinting at strong momentum, though crossovers could develop if selling pressure intensifies.
Key Levels to Watch
Market participants are closely watching support levels around $0.2300 and $0.2250. A breakdown below these zones could push DOGE toward $0.2200, while holding above them may allow the asset to consolidate before any further upside.
Despite the looming risk of a short-term retracement, Dogecoin’s market cap of $35.7 billion underscores continued investor interest. With DOGE ranked eighth among cryptocurrencies, it remains a closely watched asset as traders speculate whether its current rally is just a pause before another leg higher or the beginning of a broader correction.
