Dogecoin (DOGE) Price Shows Signs of a Bearish Reversal After Failing to Break Above the $0.1491 Resistance Level

Dogecoin's (DOGE) recent price surge to $0.1491 has pushed the Relative Strength Index (RSI) into overbought territory

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Dogecoin (CRYPTO: DOGE) recently experienced a price surge, reaching $0.1491, but this rapid ascent has pushed the Relative Strength Index (RSI) into overbought territory. This development suggests a potential shift in momentum, as the token may be overvalued according to technical analysis.

As the RSI climbs above 70%, it usually indicates that an asset is trading in the overbought zone. In the case of DOGE, its 4-hour RSI is around 80%, which shows strong overbought conditions. This level indicates that buying pressure is decreasing and a pullback may be on the horizon.

Dogecoin’s 4-hour price action is also showing signs of a bearish reversal. Despite trading above the 100-day Simple Moving Average (SMA), DOGE failed to break above the $0.1491 resistance level. This inability to push past the key level triggered selling pressure, potentially signaling that the bullish momentum may be losing steam and the asset may retrace toward lower support levels.

On the daily chart, DOGE is exhibiting signs of weakness, highlighted by the rejection wick on the current candlestick. This wick indicates that buyers tried to drive the price up but encountered strong selling pressure. This signals that the bullish momentum may be weakening and, if the trend continues, we could see further downward movement in the coming days.

Finally, the 1-day RSI for Dogecoin is signaling a potential price reversal. The signal line has risen to 78%, indicating an overbought condition. Typically, this high RSI level reflects strong buying pressure and significant upward strength in recent trading sessions. However, being in the overbought zone suggests that a correction or pullback may be imminent, as profit-taking by buyers and renewed selling pressure could occur.

Overall, the technical analysis shows mixed signals for DOGE. While the bulls are attempting to maintain control, overbought signals from technical indicators like the RSI may lead to a pullback or correction. The direction of DOGE will depend on the bulls’ ability to sustain their momentum and push the price above $0.1491 or face a potential pullback toward the $0.1293 support level.

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