Dogecoin Surges Over 30% Amid Renewed Interest, But Technical Warning Looms

• Dogecoin has surged 31.18% over the last week, driven by renewed speculative interest in meme coins.
• The TD Sequential indicator signals a potential short-term correction in Dogecoin’s price despite the recent gains.
• Dogecoin surpassed its 200-day simple moving average at $0.1294, a key level that previously stalled its progress.

Dogecoin (DOGE) has experienced a significant surge over the past six days, climbing as high as $0.147 during Saturday’s trading session. However, traders are urged to approach with caution, as technical indicators suggest the possibility of a short-term pullback. 

Technical Indicator Flashes Warning

According to crypto analyst Ali, the TD Sequential indicator a tool used to spot potential trend exhaustion has flashed a sell signal on Dogecoin’s daily chart. This could imply that DOGE may face a brief correction before possibly resuming its upward momentum. Despite this technical warning, Dogecoin’s overall price trajectory remains positive.

The recent jump in Dogecoin’s price has been fueled by renewed speculative interest, particularly in meme coins. Sentiment, a blockchain analytics platform, reports a sharp increase in discussions surrounding meme coins. This uptick coincides with Bitcoin’s approach to the $70,000 mark, pushing Dogecoin’s price up by 31.18% in the last week.

Dogecoin Reaches Key Price Milestones

Since hitting a support level at $0.102 on October 10, Dogecoin has posted eight days of consecutive gains, overcoming significant resistance at the daily simple moving average (SMA) of $0.1294. This key level, which has hindered DOGE’s progress since April, has now been surpassed. The next potential targets for Dogecoin’s price lie at $0.17 and $0.19.

As of the latest updates, Dogecoin is trading at $0.145, marking an 8.51% increase in the last 24 hours. Should profit-taking occur, the daily SMA 50 at $0.108 is expected to provide substantial support. Moreover, the rise in social dominance and interest in meme coins could further sustain DOGE’s price growth in the near term.

Dogecoin Ecosystem Update: Libdogecoin SPV

The Dogecoin Foundation recently announced progress on the Lib Dogecoin SPV (Simple Payment Verification). This technology will allow applications to transact with fewer resources, enabling online merchants to switch between different node types, which could boost Dogecoin’s adoption of payments.