Dogecoin (DOGE) continues its upward trend, reaching $0.14 and gaining over 7% in the last 24 hours. However, technical analysis signals that the meme coin might be overbought, pointing to a possible correction soon.

DOGE Continues Price Rally Amid Broader Market Optimism

As a result of general market optimism, Dogecoin (DOGE), the most valuable meme coin, is presently experiencing a rise. Ali Martinez, an on-chain market analyst, pointed out DOGE technical signs that could indicate a price drop is on the horizon.

In an X post, Martinez shared a Dogecoin chart demonstrating that DOGE has surpassed the $0.14 mark in price. He brought attention to the TD Sequential, an important signal for pinpointing the precise moment of po

DOGE Might Be Overbought Due to Increased Buying Pressure

Because of this, it's possible that DOGE is overbought, as its current gain is due to higher buying. When there is more demand than supply, this usually happens. The overbought zone is also reached by cryptocurrencies when there is a sudden increase in price but no underlying investing rationale.

When prices are overbought, a selling session often follows. Martinez asserted that DOGE might see a temporary pullback before continuing its current upward trend based on this reasoning. The price of DOGE has increased by 7.15% in the last 24 hours, and it was trading at $0.143 as of this writing.

Weekly Chart Shows DOGE's Strong Potential for Further Growth

Per U.Today, a 28% increase in DOGE's price on the weekly chart indicates that the cryptocurrency has room to grow in value.

On the other hand, several market analysts have predicted positive results for DOGE. Crypto trader DonAlt, who prefers to remain anonymous, thinks DOGE has a good chance of breaking $1. The trader's prediction was predicated on the fact that Dogecoin has more social feelings than its competitors.

Whale Activity Boosts Bullish Sentiment Around Dogecoin

Not only has social sentiment been on the rise, but whale behavior on Dogecoin has also been on the rise lately. Overnight, there were about $63 million worth of DOGE held by major investors. Whales brought in more than 1.17 billion DOGE in just one day, while they sent out 640.1 million DOGE.

The Dogecoin whales are acting bullishly, as this shows. Notable price swings typically follow such actions by these whales because of the vast amounts of cryptocurrency they own.