Dogecoin (DOGE) has recently experienced a surge in price, leaving many investors upbeat. But just as quickly as it rose, the future of Dogecoin is being challenged by a looming danger that could cause its value to plummet.
According to Coingecko, the price of DOGE currently stands at $0.093031, marking a 3.0% increase in the past 24 hours and an impressive 11.6% surge over the last 7 days.
Can Dogecoin’s price sustain its recent surge, or will the looming obstacle keep this beloved meme coin at bay?
Increasing Volatility Could Cause Sharp Downturn In Dogecoin Price
Dogecoin’s price over the past 24 hours on TradingView reveals a bullish trend, characterized by higher highs and higher lows formation, with the support level expected to hold firm around $0.08830.
Despite the moving average being below the current price at $0.0859, buying pressure continues to be present in the market. However, there are indications that the volatility is increasing, potentially leading to a slump in price in the coming days.
Moreover, the relative strength index (RSI) score of 60.93 highlights the current price to be in the overbought territory. As a result, there is a risk that Dogecoin’s price may experience a sharp downturn.
Analysts Warn Of Potential Correction In DOGE Price
As Dogecoin’s price continues to climb, investors and enthusiasts alike are curious about the future of this cryptocurrency. Based on the information gleaned from the price chart analysis, it seems that the crypto’s price may face some uncertainty in the coming days.
The increasing volatility and overbought RSI score are signs that the current price levels may not be sustainable, and a sharp downturn could be on the horizon.
DOGE total market cap now at $12.9 billion on the daily chart at TradingView.com
While it’s challenging to predict the exact price that Dogecoin will reach, analysts believe that the potential for a correction is likely. The resistance level for the cryptocurrency is at $0.0968, which could act as a barrier preventing the price from increasing any further. On the other hand, the support level at $0.08830 could prevent the price from dropping too low.
It’s essential to note that cryptocurrency markets are notoriously unpredictable, and price fluctuations can happen at any time. Therefore, it’s crucial to approach investments in cryptocurrencies with caution and not to invest more than one can afford to lose.
-Featured image from Pixabay