Bitcoin News Today: Dogecoin Falls 4% as Overbought RSI Sparks Pullback

Dogecoin (DOGE) has retreated from recent highs as key technical indicators signal a shift in momentum following an extended rally. The cryptocurrency’s Relative Strength Index (RSI) has climbed to 80.56, entering overbought territory and suggesting increased chances of a near-term price pullback. This comes after DOGE’s value surged over 53% in the third quarter, peaking at $0.2868 before retreating to $0.2644—a 4% decline in the last 24 hours. The overbought condition, combined with a 3.4% rise in trading volume, indicates traders are adjusting positions amid cooling investor interest.

The correction aligns with broader market trends, as Bitcoin’s 0.8% drop and a 1.4% decline in the overall crypto market have weakened sentiment around meme coins. DOGE’s price currently hovers near its upper Bollinger Band of $0.2751, a level that signals it has extended beyond typical volatility thresholds. The middle and lower bands, positioned at $0.2050 and $0.1349 respectively, further highlight the potential for downward movement. Analysts note that such technical extremes often precede corrections, particularly when momentum indicators fail to confirm price strength [1].

While the RSI has since moved to a more neutral range from its overbought peak of 74.25, bearish divergence in the Moving Average Convergence Divergence (MACD) suggests exhaustion in the upward trend. The Wave Trend (WT) oscillator has also shifted toward oversold levels, indicating a potential repositioning of capital ahead of a possible rebound. However, the absence of a confirmed breakout above key resistance levels—despite DOGE’s 70% gain over the past 30 days—underscores the fragility of its momentum [2].

Investor behavior has further complicated the outlook. Short-term traders are exiting overbought positions, while long-term holders appear to be accumulating—a pattern mirrored across other meme coins. This dichotomy between retail and institutional flows could delay a consolidation phase, as speculative selling may be offset by strategic buying in deeper corrections [3]. Meanwhile, the broader crypto market remains above $3.82 trillion in total value, with altcoins like DOGE holding above critical support levels.

Despite the pullback, analysts caution that external factors such as regulatory developments and macroeconomic conditions could influence the market trajectory. The recent outflows from Bitcoin ETFs and broader capital shifts have added downward pressure, though DOGE’s 70% monthly gain suggests resilience in the face of volatility. Until a clear topping pattern emerges in the RSI or a sustained move above key resistance levels occurs, the market is likely to remain range-bound, with traders closely monitoring on-chain metrics for signals of trend resumption [4].

Sources: [1] https://coinmarketcap.com/community/articles/68841ba63ec7993ab9bbf88c/ [2] https://www.fxstreet.com/cryptocurrencies/news/altcoin-season-stalls-pump-fartcoin-pengu-post-double-digit-losses-as-bullish-momentum-fades-202507250344 [3] https://academy.darkex.com/analysis/technical-analysis/daily-technical-analysis/crypto-market-snapshot-btc-eth-xrp-sol-doge/ [4] https://coindcx.com/blog/crypto-deep-dives/crypto-bull-run-2025/