DOGE Price Analysis: Yearly High of $0.30 Reached, But RSI Signals Overbought Conditions

DOGE has recently shown strong price action, reaching a new yearly high of $0.30 following a bullish surge that began in late October.

Key Takeaways

DOGE has seen a strong price increase, reaching a new yearly high of $0.30 after a bullish surge that began in late October.

The daily Relative Strength Index (RSI) signals overbought conditions, leading to questions about the remaining upside potential.

DOGE Price Analysis

On March 28, DOGE’s price reached its yearly high at $0.22, completing a five-wave structure that began in October 2023. From this peak, the price underwent a corrective phase, forming a descending triangle and retracing to $0.090, where it encountered crucial horizontal support.

After bouncing from this level, DOGE faced descending resistance on Sept. 14, which caused a temporary pullback.

However, the market sentiment remained positive as DOGE created a higher low during its retracement. A new upward movement started on Sept.16, breaking above the descending resistance and reaching $0.13 by Sept. 28.

But this rally was short-lived, with a sharp 24% drop erasing earlier gains and raising concerns about the bullish scenario.

The correction appeared to be forming an ABCDE structure, with the upward move from Sept. 6 initiating a five-wave impulse. From this, an ascending channel formed, and we saw its breakout on Oct. 28. After a retest of its resistance for support on Nov. 3, DOGE started a new bullish advancement.

A new yearly high was reached today at $0.30, and the price continues to move up after increasing parabolically by over 40% since Friday.

With the daily Relative Strength Index signaling overbought, is there more room for upside potential?

DOGE Price Prediction

The hourly chart shows that the latest uptrend probably began on Oct. 26 after its previous one ended at the ascending channel’s resistance.

From there, a breakout occurred, and DOGE retested the level on Nov. 3, resuming its upward trajectory once resistance turned into support.

Since we can count a five-wave pattern to today’s high, the high probability is that this uptrend is concluding. We saw some signs of weakness, but overall, the price is still in a bullish trend.

If these signs of weakness continue, we can expect the formation of a consolidation range, either sideways or descending. Its breakout direction will give us further insight into the next dominant trend.

If there is more upside potential for DOGE, an upward breakout could lead to the next target at $0.31.

But if the price worsens, we can anticipate a further drop in the $0.23 area and a more sustained depreciation afterward.