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Dogecoin price Weekly RSI rose to 70.68 signaling overbought levels and a 12% correction is coming. The current Dogecoin price rally has printed a breakout from the symmetrical triangle pattern, which is a strong indication of a change in trend; The rate of the 50-and-100-day EMA crossovers in the Dogecoin chart may well again signal an upturn to the current rally. High MVRV suggests that DOGE may briefly retreat in the coming period, although it will ultimately generate strong gains as a result.
Dogecoin was down by 2% on Sunday trading and is currently trading at $0.141. Despite this, there has been a slight drop following a successful weekly performance last week to allow the buyers to take charge. The recent rally was due to the mention of “D.O.G.E.” by Billionaire Elon Musk at a Trump campaign event and hence might be unsustainable for a higher price.
Is DOGE Overbought After The 30% Weekly Rally?
The ‘Uptober’ has recently come back to influence the crypto market as the main digital currency, BTC, races to $70K. Among top altcoins, we saw relatively high volatility for the Doge, rising from $0.103 to $0.145 to add 42.2% to the surge. This recovery was mainly because of Elon Musk, who tweeted with “D.O.G.E.” after Trump’s PA campaign event. Additionally, using the Dogecoin price prediction, there is a clear breakout from the resistance trend line out of the symmetrical triangle pattern that has remained relevant since August 2024.
The chart setup created an ongoing firm contraction ranging between two ascending trend lines designed to recover the bullish run. But the coin price got too far away from the Exponential moving average, which means the buyers have taken the recovery too far, and this requires a correction.
According to press reports, the DOGE price had reached as low as $0.14, with the market cap having climbed to $20.68 billion. Hence, a potential move to pullback could cause the asset to drop 12% further to a breach triangle resistance at $130.
The Use of MVRV in Forecasting DOGE, Its Possibilities
The MVRV ratio which compares the market value of Dogecoin to its real value is up by 14% within the one-month period. This increase confirms that many short-term traders are currently profitable which might exert a bearish pressure as traders seek to book their profit. Fundamentally, high MVRV ratios marked the local market tops in the past since miners cash out their profits when the market reaches its apex.
If this selling pressure comes into force, Dogecoin will probably lose its price for some time. However, if DOGE can hold these levels, which it has done well so far, it could see another push higher rooted in more buying. Taking a long-term view, in this case, the price of Dogecoin can drastically increase with analysts giving targets of $1.5-$2, which are half-baked yet reasonable projections at the current price from this meme-inspired digital currency.
The Downside Before the Upside: An Inflection Point?
Dogecoin has performed exceptionally well in the recent past, however by certain technical intelligence such as RSI, and MVRV, the market is set to pull back. ES investors should probably get ready for a possible retracement back to the $0.130 level but the longer-term picture is bullish. As long as DOGE can hold the key support levels and continues to break away from the symmetrical triangle, it might soar to as high as $2 in the next couple of months. Of course, traders should be always careful and ready for fluctuations in the cryptocurrency market.
