Is Dogecoin Overbought, Or There’s More Place For Price Recovery?

The Dogecoin recovery rally turned sideways price hit the $0.15 resistance. Moreover, the multiple rejection candles at this barrier indicate the sellers are actively defending this level. Though the altcoin has a higher chance for bearish reversal and decreasing volume suggests the potential pullback in a temporary note. 

Key points:

• The Dogecoin price may witness a longer correction to stabilize the excess buying
• The daily-RSI slope jumps into the overbought territory foretell an upcoming correction
• The 24-hour trading volume in the Dogecoin coin is $4.4 Billion, indicating a 43.5% gain.

Source-Tradingview

Dogecoin was the star of last week’s bullish recovery in the crypto market. While this bull run was majorly backed by real perks, the altcoin showcased 170% growth when the prices jumped from $0.0589 to $0.159 high within a fortnight. However, the bullish rally stalled at the $0.152 mark, and the long-wick rejection candles indicate the exhausted bullish momentum.

The daily chart showed several higher-wick rejection candles indicating the active selling pressure at this resistance. However, the sentiment for this memecoin is still bullish; thus, the price continues to resonate in a sideways rally.

The largest cryptocurrency, Bitcoin, consolidating in a sideways rally, promotes the aforementioned price behavior. Furthermore, the dogecoin currently trades at the $0.13 mark with an intraday loss of $8.12.

If the daily candle closes below the $0.1335 support, the altcoin is expected for a longer correction. This potential retracement is favorable for dogecoin’s price concerning the quick rally it witnessed by several events. Thus, the $0.11 and 0.09 support are suitable to resume the prevailing recovery.

On a contrary note, a bullish breakout from $0.152 increased the bullish momentum to encourage further rally.

Technical indicator

RSI indicator: The daily-RSI slope still wobbling in the overbought region indicates the price needs a better correction to stabilize the Dogecoin price.

EMAs: an upswing in crucial EMAs(20, 50, 100, and 200) reflects the strong buying of more trades. However, the huge distance between the coin price and the moving average is unhealthy, thus offering another signal for bearish correction.

Dogecoin Price Intraday Levels

• Spot rate: $0.134
• Trend: bearish
• Volatility: Medium
• Resistance levels- $0.152 and $0.172
• Support levels- $0.135 and $0.11