Dogecoin (DOGE) Bull Rally May End Soon, Here's Why

Dogecoin Rides Market Momentum, But Price May Stall

Dogecoin (DOGE) continues to surge as part of the broader market rally, rising 4.93% in the past 24 hours to $0.1729. However, analysts believe this rally may be short-lived.

Overvalued Price and High RSI

Driven by increased activity in the past week, DOGE has reached its highest levels since May, with a 52-week growth of 152%. At its current price, DOGE appears overvalued, supported by a 24% and 42% growth rate in the last week and month, respectively.

The current trading volume and Relative Strength Index (RSI) of 76.79 suggest a potential cooling-off period. A temporary retracement is considered healthy for the market, especially as Bitcoin holders become increasingly profitable, leading to potential profit-taking.

Altcoins May Follow Bitcoin's Lead

As altcoins like Dogecoin have a strong correlation with Bitcoin, the expected retracement in Bitcoin could lead to a decline in DOGE as well.

Whale Support

Despite uncertainties, Dogecoin whales have shown increased activity, accumulating significant amounts of the coin. These whales provide support by holding their positions, preventing extreme sell-offs.

Future Price Action

Dogecoin's future price action remains multi-faceted and unpredictable. Its resilience will depend on various factors, including the overall market trend and continued support from whales.