Dogecoin surged closer to its all-time high during the previous intraday session. The surge occurred amid relative normalcy’s return to the market after several days of massive green candles.
The day started with the asset trading at $0.38. However, it faced notable declines, dipping to a low of $0.35. It rebounded, surging to a high of $0.43 as it failed in its bid at $0.44. It was up by over 13% at the peak but closed with less than 6% gains.
The altcoin is trading at $0.40 at the time of writing, slightly up from its opening price. The current price point to the bulls regaining momentum after a dip to $0.38. Nonetheless, the asset was largely bearish at the start of the day. What changed?
Renewed Investors Interest
Data from IntoTheBlock show a massive bullish concentration over the last 24 hours. The first sign of this trend is the increase in transactions greater than $100k. The amount of transactions has grown starting Nov. 9, from 1150 to 3230 as of Nov. 11. The increase continued and surged by over 50%, hitting 4997 as of the previous intraday session.
Over the last seven days, over 3% of the current holders bought the asset—the over 2% increase in its Telegram community points to a shift in retail trader focus. The net network growth is positive as more users interact with its ecosystem, seeing more inflows than the previous day.
More investors are active at the time of this writing. Over the last seven days, the coin saw over 40k new wallet creations. The number of wallets with zero balance significantly dropped as the bulls accumulated. All metrics point to the asset being bullish at the time of this writing.
Nonetheless, the drivers behind this massive push are fundamentals. The United States President-elect recently announced the appointment of Elon Musk as the head of the Department of Government Efficiency (DOGE). The latest selection saw the memecoin soar as the Tesla CEO has been an open advocate for the asset.
The coin sees massive volatility as the bears are closing in—several indicators on the one-day chart point to a possible change in market trajectory.
Dogecoin is Overbought
The onchain metrics on CryptoQuant suggest that the asset is due for corrections. The stochastic and relative strength index are currently positive, indicating that the cryptocurrency is overbought.
This is also the case on the one-day chart. The RSI on this scale broke above 70 on Nov. 5 and has since continued above the mark and climbed higher. The indicator is currently at a record 92 as DOGE continues to be overbought. This means it is due for corrections, and such change may occur soon.
The Bollinger band also blares warnings amidst the ongoing surge. Dogecoin was above the upper band on Nov. 6 and continued upward as the metric adjusted to accommodate the trend. It is also worth noting that asset is expanding due to massive volatility. Nonetheless, breaking above the upper SMA is a negative signal and hints at impending bearish capitalization in the coming days.
Price actions over the last three days point to the bulls gradually losing strength. On Tuesday, it tested the 0.44 mark but failed to break it.
The apex memecoin started the day at $0.35 and shot up as trading volume spiked. It pushed prices above $0.40 and upwards, facing massive rejections at $0.43 following its attempts at $0.44. DOGE was up by over 20% at this height. However, it lost momentum and started a descent.
Dogecoin’s price movement during the previous intraday session was similar, with lesser gains. In both instances, the bears were triumphant at the start of the day but lost control as the bulls regained control. Nonetheless, the coin retraced after hitting the peak.
Selling pressure gradually increases and may grow as the bulls get exhausted.
