Market Analysts Warn Dogecoin Could Be Overbought Following Recent Rally

Dogecoin Faces Potential Price Correction Despite Recent Spike

Dogecoin (DOGE) has experienced a surge of 7.15% within the past 24 hours. However, technical indicators suggest that a potential price correction may be on the horizon.

TD Sequential Indicator Signals Overbought Position

Market analyst Ali Martinez has identified a sell signal on the daily chart of Dogecoin using the TD Sequential indicator. This indicates that the cryptocurrency may be overbought and due for a brief correction.

Whale Activity Supports Bullish Sentiment

Despite the potential correction, on-chain activity suggests that large investors are accumulating DOGE. Whale activity has resulted in the accumulation of $63 million worth of DOGE.

Long-Term Potential Remains Positive

While the TD Sequential indicator suggests a short-term correction, some analysts remain optimistic about DOGE's long-term potential. Positive whale activity and increasing social sentiment have led some to predict a price target of $1.

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