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Dogecoin (DOGE) has been on a tear over the last six days, reaching highs of $0.147 during Saturday's trading session. While the likelihood of further gains remains, traders and investors might need to proceed with caution in the event of a validation of a short-term technical warning.
According to crypto analyst Ali, the TD Sequential indicator has flashed a sell signal on Dogecoin's daily chart. The TD Sequential is a technical analysis tool that detects possible trend exhaustion and price reversals. This signal suggests that DOGE may be poised for a brief correction before potentially resuming its upward trajectory.
Dogecoin's price jump this week has been driven by renewed interest and speculative trading.
The TD Sequential flashes a sell signal on the #Dogecoin $DOGE daily chart, anticipating a brief correction before the continuation of the uptrend. pic.twitter.com/nW2yZgnX5h
— Ali (@ali_charts) October 19, 2024
According to Santiment, this week has seen a significant surge in meme coin discussions. Traders are doubling down on high-leverage speculative meme coins as Bitcoin nears the $70,000 market, causing their discussion rates to reach the highest level since May.
This surge in social dominance is reflected in prices, with Dogecoin up 31.18% weekly.
At the time of writing, DOGE was up 8.51% in the last 24 hours to $0.145, on track for its sixth consecutive day of gains from Oct. 14.
Dogecoin price action
Dogecoin began rising after hitting support at lows of $0.102 on Oct. 10. Since this date, Dogecoin has marked eight out of nine days in the green.
Dogecoin's climb has surpassed the daily SMA 200 at $0.1294, a level that has slowed DOGE's price since April. In May and July, bulls attempted to cross this critical level but were greeted with bearish resistance.
As Dogecoin has surpassed $0.14, its next target price might be $0.17, followed by $0.19. On the other hand, the daily moving average of 50 at $0.108 is expected to provide significant support if profit-taking occurs.
In a recent Dogecoin foundation update, Libdogecoin SPV is currently being readied for Dogebox. SPV nodes allow applications to transact without requiring the resources of a full node. Dogebox will let online shop owners switch between Core or SPV nodes depending on their requirements.