Dogecoin (DOGE) Short-Term Warning Issued Amid 30% Price Jump

Dogecoin Faces Short-Term Technical Warning Amidst Market Surge

Over the past six days, Dogecoin (DOGE) has experienced a significant surge, reaching a high of $0.147 during Saturday's trading. While the potential for further gains remains, traders and investors are advised to exercise caution due to a technical warning.

Crypto analyst Ali has identified a sell signal on Dogecoin's daily chart using the TD Sequential indicator. This tool aims to detect trend exhaustion and potential price reversals. The signal suggests that DOGE may be due for a short-term correction before continuing its upward trajectory.

The recent price increase was fueled by renewed interest and speculative trading. As Bitcoin approaches $70,000, traders are reportedly doubling down on highly leveraged meme coins like Dogecoin, resulting in increased social media discussions. This surge in sentiment is reflected in the price action, with DOGE rising 31.18% over the past week.

At the time of writing, DOGE is trading at $0.145, up 8.51% in the past 24 hours. It is on track for its sixth consecutive day of gains since October 14.

Dogecoin's Price Analysis

DOGE's upward momentum began after finding support at $0.102 on October 10. Since then, it has registered eight out of nine green days.

The price has broken above the daily Simple Moving Average (SMA) of 200 at $0.1294, a level that has held DOGE back since April. Bulls previously attempted to surpass this crucial resistance in May and July but faced bearish opposition.

Now that DOGE has surpassed $0.14, its next targets are likely to be $0.17 and $0.19. However, if profit-taking occurs, the daily SMA of 50 at $0.108 is expected to provide significant support.

In other Dogecoin news, the Dogecoin Foundation is preparing to integrate SPV nodes into Dogebox, the project's point-of-sale system. This will allow online businesses to choose between full nodes and SPV nodes based on their needs.