Dogecoin is down today after entering overbought territory, with some traders securing profits generated from the "Trump trade."

Dogecoin

DOGE

tickers down

$0.2255

is retreating after soaring to its highest levels in five months, suggesting a growing profit-taking sentiment among traders following Donald Trump’s win.

$ETH

DOGE price rally overheating

DOGE’s price dropped by approximately 14% from its local high of around $0.218, reaching $0.188 on Nov. 7. The top memecoin’s correction appeared after its daily relative strength (RSI) reading crossed above 70, which is considered an “overbought” area.

$BTC

The RSI crossing into this territory suggests that DOGE has been experiencing strong bullish momentum, potentially leading to a short-term price pullback as the rally overheats.Looking broadly, the recent RSI top at 74.91 is a lower high compared to its Oct. 9 peak of 79.57. In the same period, Dogecoin has grown by over 22%, indicating a growing divergence between DOGE’s price and momentum.

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Typically, such a divergence suggests that the bullish momentum behind the price surge may be weakening. So, even though DOGE’s price is climbing, the diminishing RSI strength indicates that fewer buyers are entering the market or that buying pressure is tapering off in the short term.DOGE futures show growing indecisiveness

Dogecoin’s price decline today accompanies signs of extreme indecisiveness in its futures market.

For instance, since Trump’s win on Nov. 6, DOGE experienced total liquidations amounting to approximately $63.83 million, including $32.31 million in short liquidations and $31.61 million in long liquidations — almost the same.These liquidations suggest a highly volatile environment where both bearish and bullish traders are being squeezed, driven by sharp price swings in the Dogecoin market.

Such high volatility may attract or deter traders depending on their risk tolerance, leading to quick profit-taking by traders after strong price rallies — which appears to be the case today.