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DOGE Traders’ Risky Bets Raise Concerns in Overheated Market

Published 17/11/2023, 19:25
DOGE Traders’ Risky Bets Raise Concerns in Overheated Market
DOGE/USD
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Coin Edition -

  • Dogecoin (DOGE) soars with 7% daily gains, positioning itself as a top-performing crypto in the market.
  • Technical indicators hint at a potential ‘golden cross,’ driving DOGE closer to the $0.1 milestone.
  • Growing DOGE community enthusiasm and Astrobotic’s moon token launch fuel investor interest and trading volume surges.

Dogecoin (DOGE) has enjoyed a significant market value increase, with the price surging by 5% in the last 24 hours and trading over $0.08. This surge is a more significant trend, with DOGE up 12% in the previous week and 39% in the last 30 days.

As a result, Dogecoin’s market value has hiked to $11.7 billion, with over 80% growth in trading volume during the same period, according to CoinMarketCap.

DOGE/USD 24-hour price chart (source: CoinStats)

The spike in Dogecoin’s trading volume, particularly notable during the early Asian trading sessions where it reached $2 billion, underscores growing investor interest. This surge positions DOGE as the standout crypto among the top ten digital currencies by market capitalization.

Moreover, the increased trading activity aligns with the growing enthusiasm in the DOGE community, especially regarding Astrobotic’s planned launch of a physical Dogecoin token to the moon in December.

Technical Indicators and Market Outlook

Technical indicators support the upward movement in Dogecoin’s price. The coin has successfully flipped significant resistance levels into support, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). These levels now serve as robust support zones, potentially aiding further price ascension.

Additionally, the prospect of a ‘golden cross’ on the daily chart, indicated by the 50-day EMA crossing above the 200-day EMA, suggests a strengthening uptrend, potentially propelling DOGE towards the $0.1 mark.

DOGE/USD 4-hour price chart (source: TradingView)

Despite the optimistic trend, there are considerations for potential corrections. As indicated by the Relative Strength Index (RSI) nearing the 70 mark, the near-overbought conditions suggest a temporary slowdown in DOGE’s price ascent. In such a scenario, Dogecoin could find support at the psychological level of $0.080.

Moreover, support may be offered by the demand zone ranging between $0.076 and $0.0732. In the event of a more significant pullback, the EMAs between $0.0767 and $0.0708 could provide a cushion against further declines.

In conclusion, Dogecoin’s meteoric rise shows strong potential but calls for caution as overbought conditions may trigger temporary slowdowns.

The post DOGE Traders’ Risky Bets Raise Concerns in Overheated Market appeared first on Coin Edition.

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