TL;DR

Dogecoin surged 10% daily, with speculation linking the rally to Elon Musk, while analysts predict potential further gains. Despite the rise, its RSI over 70 suggests that the coin may be overbought and due for a pullback.

Is DOGE Ready to Skyrocket?

The leading meme coin is among the crypto sectors top performers today (October 16), recording a 10% price spike. It currently trades just south of $0.13, while its market capitalization surpassed $18.6 billion.

DOGE Price, Source: CoinGecko DOGEs latest rally could be attributed to the overall revival of the industry, where Bitcoin (BTC) exceeded $67,500. On the other hand, other well-known meme coins have struggled to keep pace, witnessing more modest price increases.

As such, some industry participants suggested that Dogecoins resurgence could have some connection to Elon Musk. To the uninitiated ones, Teslas CEO and one of the wealthiest people on the planet, is a huge proponent of the meme coin, often praising its merits. X user Bluntz was one of those supporting that theory:

$doge going mental today while all the other memes have been sliding.

somethings cooking and i cant help but feel its something elon related

pic.twitter.com/2yyNiWnfQA

Several analysts claimed that DOGE has yet to make the headlines by experiencing a price explosion. X user Ali Martinez presented a chart showing that the valuation could skyrocket to an all-time high of $10 in the following months.

It is worth mentioning, though, that such a rally would require Dogecoins market cap to jump to over $1.4 trillion, making the forecast quite unlikely. Some people commenting on the post shared skepticism, describing the prediction as simply impossible:

$doge going mental today while all the other memes have been sliding.

somethings cooking and i cant help but feel its something elon related

pic.twitter.com/2yyNiWnfQA

The Bearish Factor

Despite DOGEs impressive surge in the past 24 hours, one technical indicator hints at an incoming correction. Namely, this is the Relative Strength Index (RSI), whose ratio surpassed 70. 

The metric measures the speed and change of price movements, with readings below 30 suggesting that the asset is in oversold territory and might be headed for a rally.

On the other hand, anything above 70 generally signals that DOGE is overbought and could be due for a pullback in the short term.