Dogecoin (DOGE) Soars 8%, But Hold On For The Ride Back Down

Dogecoin (DOGE) is the adopted pup of the crypto world, and it’s having a good fur-day! With an 8% surge over the past week, DOGE owners have seen a nice return on their animal instinct investments!

However, an increase in one key metric could be a bad sign for DOGE’s short term release from the doghouse. Here’s what we know!

Dogecoin Price Surge

Dogecoin has surged to its highest level since early May over the last week, bringing a return of 8% for those who put their coins in the DOGE box. The exuberance might be short-lived, though, as its relative strength index (RSI) is trending upwards.

What’s RSI?

RSI is a metric used to measure the strength of a price trend. It’s used to detect whether a coin has been oversold or overbought, and it works by looking at the difference between a coin’s price gains and losses. A value above 70 indicates that the coin is overbought, so if that value is hit with the current surge in DOGE, then this could indicate a sharp pullback ahead.

So What Does This Mean?

It’s worth noting that DOGE is still relatively new, so there may be a chance of renewed traction in the near future. But coin owners should be aware that it may also be time for the pup to cool off, with a possible pullback in store if the RSI metric indicates that the coin has been overbought.

How To Prepare?

If you’re a DOGE owner or just someone who loves the concept of the Dogecoin pup, it’s probably the best time to prepare for a possible pullback:

  • Follow Trends: Keep an eye on this metric to determine if Dogecoin is overbought/oversold.

  • Set Limits: If the value reaches 70, then it may be a good idea to limit your investments in Dogecoin and set a level at which you are comfortable selling.

  • Be Patient: Even if a pullback happens soon, that doesn’t mean that Dogecoin won’t bounce back. Just hold tight and wait out the storm until the pup is ready for its next adventure.

Though the Dogecoin pup may be taking a break from its recent hikes, don’t forget how quick it is to rebound! Its momentum could propel it to great heights soon, so don’t forget to give it a pat and some doggy treats for the good times ahead!