DOGE Technicals Hint at Correction as Meme Coin Encounters Resistance Around $0.1797

The dog-themed meme coin DOGE encountered resistance around $0.1797, a recent peak reached after Elon Musk's endorsement at Donald Trump's rally

Meme coin DOGE encountered resistance at around $0.1797, following Elon Musk's appearance at Donald Trump's rally in New York. This recent peak saw the token experience a decline of 3.34% in the past 24 hours, bringing its market cap to $24.80 billion.

Technical indicators on the daily chart suggest a possible trend reversal, hinting at a correction. One such indicator is the Bollinger Bands, which show high price volatility as their bands continue to widen.

DOGE's value hovered near the upper band at $0.1725, indicating an entry into the overbought territory. This increases the likelihood of a correction. Potential support in the event of a pullback could be found near the middle band at $0.1365, where the cryptocurrency could stabilize before a possible upward trend resumes.

The Relative Strength Index (RSI) also supported the Bollinger Band analysis, further indicating an overbought scenario. As observed on TradingView, the indicator peaked at 79.15 yesterday, almost reaching an eight-month high since March 4.

However, this RSI level dropped to 73.38 today, increasing the possibility of a short-term market correction.

Despite these signals of a potential reversal, other indicators hinted at continued bullish momentum. The Directional Movement Index (DMI) showed that bulls were currently dominant, with the +DI at 40.0231 higher than the -DI at 9.4867.

This trend strength was further highlighted by an ADX reading of 36.4551, suggesting that the uptrend might continue in the near term, potentially leading to further gains before any correction materializes.

A CryptoNewsZ analysis revealed that Dogecoin experienced massive shifts in large holders' inflows and outflows, indicating mixed market sentiment for the cryptocurrency.

At the time of press, the inflows had surged, with a 7-day change of +75.19% and a 90-day rise of +435.16%. This suggested that large DOGE token holders were likely accumulating or preparing for future trading activity.

This accumulation coincided with the meme coin hitting resistance at around $0.1797, which could be a bullish sign if accumulation continues. On the other hand, outflows showed an even steeper increase, with a 7-day rise of +510.14% and a 90-day change of +230.19%.

This indicated that some large holders were selling at the current levels, adding selling pressure that could lead to a price correction.

Historically, the $0.17 resistance level has acted as a formidable barrier, forcing the token’s price to retreat upon contact, suggesting that the meme coin may struggle to break through it.

Moreover, with large holders’ outflows vastly outpacing inflows, this imbalance hints at a potential price correction.

In such a scenario, key support levels lie around the fair value gap at $0.1595 and $0.1453, with further support at the Bollinger Bands middle arm at $0.1365. However, a break above $0.1797 could renew bullish momentum, targeting the $0.22 level in the near term, aligned with the 1.414 Fibonacci extension level.