A lot of encouraging stimuli have been released recently, giving Dogecoin a significant lift as it keeps up its upward pace.
Due to this, the cryptocurrency with a canine motif has increased by 125% over the last week and by 129% over the past two weeks.
Dogecoin surged by 80% today, reaching a top of $0.145.
DOGE has seen gains of 125% during the past seven days.
The altcoin's RSI suggests that there will be a quick price drop.
As of the time of publication, Coingecko's tracking shows that the cryptocurrency is up 57% in the last day, trading at $0.134. The asset increased by as much as 80% during the course of the day, peaking at $0.145.
Many are speculating as to whether the hoopla surrounding Elon Musk's purchase of Twitter is to blame for Dogecoin's rally today. The millionaire is a superfan of Dogecoin, and even a single tweet mentioning the humour coin increases its worth.
Analysts speculate that the so-called "Elon Musk Effect," DOGE whale buying, better market circumstances, and other factors may have contributed to Dogecoin's high performance.
Investors would be thrilled by this event, but they are strongly advised against doing so because the altcoin may soon undergo a major price fall.
Dogecoin may soon lose its appeal.
Dogecoin, which is presently ranked eighth among the top 10 cryptocurrencies by market capitalization, outperformed other coins like Bitcoin, Ethereum, Cardano, and others in terms of gains over the course of seven days.
Its upward trajectory led to it breaking over the $0.135 resistance level, which had been the asset's main obstacle for the previous few weeks. Its $617.8 million 24-hour trading volume likewise saw a 192% surge.
For investors who are enjoying the altcoin's ongoing bullish run, one technical indicator of the coin brings bad news.
The daily Relative Strength Index (RSI) for DOGE specifically shifted into overbought area, which is a telltale sign of a swift and severe market fall.
Although there is still a chance that the token may cross the $0.17 threshold, it is very likely that it will gradually lose momentum and return to the $0.11 and $0.35 support levels.
Dogecoin's current level of volatility is modest. Therefore, the pricing "tendencies" that were described previously might come to pass.
Investors need to be aware of this, especially those who are trying to buy now in the hopes of profiting from future price increases.
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