Dogecoin is getting a huge boost from a number of positive stimuli over the past few days as it maintains its bullish momentum.
Thanks to this, the dog-themed cryptocurrency was able to rise 125% in the last seven days and also rose 129% on its bi-weekly performance.
- Dogecoin peaked at $0.145 today as it was up 80%
- DOGE posts 125% gains in past seven days
- Altcoin RSI Hints at Immediate Price Correction
At press time, according to the follow-up to Quinceko, the crypto is trading at $0.134, rising 57% in the past 24 hours. On the day, the asset peaked at $0.145, rising as much as 80%.
Many wonder if today’s Dogecoin rally is caused by the hype caused by Elon Musk’s takeover of Twitter. The billionaire is a super fan of Dogecoin, and even a one-word tweet about the meme coin boosts its value.
Meanwhile, analysts believe that some of the possible reasons for Dogecoin’s strong performance include DOGE whale buying, improving market conditions, and yes, the so-called “Elon Musk effect.”
But although this development makes investors ecstatic, they are strongly warned as the altcoin could soon experience a severe price correction.
Dogecoin could run out of steam soon
Among the top 10 cryptocurrencies by market capitalization, Dogecoin, which currently ranks 8ewas the top performer in terms of 7-day gains, outperforming Bitcoin, Ethereum, Cardano, XRP and Solana.
It’s up movement resulted in breaking through the resistance marker of $0.135 which proved to be a real challenge for the asset over the past few weeks. Its 24-hour trading volume also increased by 192% and stood at $617.8 million.
However, a technical indicator for the altcoin bears bad news for investors profiting from its continued bull run.
Specifically, DOGE’s daily Relative Strength Index (RSI) has moved into overbought territory, a telltale sign of an immediate and significant price correction.
While it is still possible for the token to reach the $0.17 marker, there is a strong possibility that it will slowly lose steam and eventually retest the $0.11 and $0.35 support levels.
At the moment, the volatility of Dogecoin is low. Therefore, its previously mentioned price “trends” might turn out to be true.
Investors need to keep an eye on this, especially those looking to buy now in hopes of profiting from successive price spikes.
Dogecoin is nowhere near replicating the 2021 run
The year 2021 was a very good year for the coin as it was able to reach a milestone value which may prove difficult to replicate now.
On May 8 last year, the crypto peaked at $0.731 to record its all-time high (ATH). Assent was unable to sustain this impressive run as it slowly declined over the course of a few months.
At present, the asset has already lost 81% of this value. DOGE is also -53.4% on a year-to-date performance count.
DOGE total market cap at $16.6 billion on the weekend chart | Featured image from Business Insider, Chart: TradingView.com Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.