Why is Dogecoin price down today?
Dogecoin (DOGE) has seen a decline after reaching peaks not seen since May 2021, reflecting increased profit-taking among traders. The price dropped by 14.25% from around $0.480 to $0.412 on November 25, 2024. This correction coincided with the Relative Strength Index (RSI) remaining above 70, indicating overbought conditions for over two weeks. Furthermore, the RSI top at 77.45 suggested diminishing bullish momentum amidst a backdrop of broader cryptocurrency market declines, primarily driven by Bitcoin's retreat after a recent high of $99,800. Liquidations in the crypto market, totaling nearly $490 million in 24 hours, highlighted trader overconfidence, particularly in Dogecoin's futures market, leading to forced sell-offs. With the ongoing price adjustment, DOGE faced resistance near the upper trendline of its ascending triangle pattern. A confirmed breakout above $0.44 could target $0.56 by year-end; otherwise, a pullback could see prices head toward $0.40.
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