TL;DR:
During the last month, Dogecoin recorded a double-digit increase, consolidating its position as the leading memecoin by market capitalization. This upward movement occurs in a context of volatility where the asset outperformed Bitcoin and Ethereum in two- and four-week timeframes.
This rally has caused optimism among investors, but some technical metrics are providing signals that worry traders. Ali Martinez, in his analysis, stated that the TD Sequential indicator issued a sell signal for the DOGE/USDT pair in the short term. This perspective is reinforced by the Relative Strength Index (RSI), which currently sits in the 88-point zone.
TD Sequential flashes a sell signal on Dogecoin $DOGE, anticipating a price correction. pic.twitter.com/2hc9AzHsw8
— Ali Charts (@alicharts) May 12, 2026
In traditional technical analysis, a reading above 70 suggests that the asset is overbought. Historical data indicates that such levels usually precede periods of consolidation or price adjustments. Conversely, readings below 30 typically signal oversold conditions, according to market trend evaluation methodology.
Meanwhile, on X, various analysts maintain conflicting stances on the immediate future of the ecosystem. Analyst JAVON MARKS contends that Dogecoin is responding positively to a bullish divergence in the MACD. Based on his interpretation of the charts, he claims the asset could face a breakout toward the target of $0.6533, which would represent substantial growth from current levels.
On the other hand, MikybullCrypto projected scenarios placing the price at levels of $12 per unit. However, this scenario presents significant structural challenges in terms of liquidity and the global market.
For Dogecoin to reach the $12 valuation mentioned by some analysts, its market capitalization would need to rise to $1.8 trillion. This figure is higher than the current capitalization of Bitcoin, which is around $1.61 trillion, and would represent more than 60% of the total value of the entire cryptocurrency sector, which currently remains below $2.8 trillion.
Other experts, such as the user Ryker, suggest that the current chart structure favors the continuation of the trend in the memecoin niche. Market data suggests that capital flow toward higher-risk assets usually intensifies after periods of stability in the major currencies.
