RSI - Dogecoin Defies Gravity Even As Bitcoin And Ethereum Cool Down But Technical Indicators Flash Red: Is A Correction Coming? | Benzinga
Dogecoin (CRYPTO: DOGE) is surging even as the two largest cryptocurrencies by market cap, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), show signs of slowing down. However, technical indicators suggest this rally might not have strong foundations for long-term growth.
DOGE’s Price Jump & Bitcoin’s Influence
DOGE skyrocketed to $0.12 on Thursday, a price last seen over two years ago, on Feb. 11, 2022. This rise coincides with Bitcoin’s surge to $64,000 on Wednesday, which marked a 20% increase for the leading cryptocurrency this week. Nearly all Bitcoin holders are currently in profit, according to IntoTheBlock data, with 99% of addresses showing gains.
Cautionary Technical Signals
Despite the price jump, technical indicators typically used to predict future price movements are signaling caution for Dogecoin.
- Relative Strength Index (RSI): At 84.0732, the RSI suggests Dogecoin may be overbought, indicating potentially unsustainable momentum.
- Commodity Channel Index (CCI): The CCI reading of 224.9929 signifies a “sell” signal, suggesting a potential price correction.
- Hull Moving ...