Dogecoin Surge Faces Potential Correction Amid Increased Meme Coin Hype

Dogecoin (DOGE) has experienced a notable surge over the past six days, hitting a peak of $0.147 during Saturday's trading session.

Although there is potential for more gains, traders and investors may need to exercise caution due to a potential short-term technical warning.

Crypto analyst Ali noted that the TD Sequential indicator, which is used to identify possible trend exhaustion and price reversals, has signaled a sell alert on Dogecoin’s daily chart.

This suggests a brief correction may occur before DOGE possibly continues its upward trend. The recent spike in Dogecoin’s price has been fueled by renewed speculative trading and growing interest.

Additionally, data from Santiment highlights a significant increase in discussions around meme coins this week. Traders are increasingly engaging in speculative trades with high leverage on meme coins as Bitcoin approaches the $70,000 mark, driving these discussions to their highest levels since May.

This heightened social activity is mirrored in Dogecoin’s performance, which has risen by 31.18% over the week.