Dogecoin price has continued to fall over the past two weeks until the last 24 hours. In particular, Dogecoin has yet to start a notable boost above the $0.30 threshold, although it has largely remained above $0.31. Amid this price drop, the Relative Strength Index (RSI) indicator has conveyed a similar drop, which was noted on social media platform X by crypto analyst KrissPax. It notes that Dogecoin’s RSI will reach 59, a level associated with bullish potential in the current market cycle.
Dogecoin RSI at 59: historical context
According to cryptanalyst KrissPax on the social media platformDogecoin’s RSI at 59 is a key technical signal. In particular, the technical analysis is based on the Dogecoin weekly time chart. According to the chart, Dogecoin’s weekly RSI has been on a downward trajectory since early December, following a peak above 90.
During this time, the meme coin was under extreme buying pressure, leading to overbought conditions. From here, Dogecoin experienced a sharp drop in RSI caused by intense selling pressure from holderswhich caused the price of Dogecoin to drop significantly. the correction pushed the RSI below the 70 and 60 levels, reinforcing the bearish sentiment during this period.
Interestingly, Dogecoin’s weekly RSI has now stabilized at 59 and has remained around this level since December 16. While this stabilization could suggest a temporary pause in selling pressure, it could also mean something more significant for Dogecoin’s price trajectory. Historical data shared by KrissPax underscores this possibility.
The last time Dogecoin’s weekly RSI was around 59 was on October 29, when the meme coin was priced around $0.15. What followed was a remarkable rebound. Dogecoin price rose over the following weeks, culminating in a high of $0.475.
Bullish Breakout Potential Amid Bearish Sentiment
Dogecoin’s weekly RSI at 59 suggests that Dogecoin could be gearing up for another rise in the coming weeks. As KrissPax speculated, this suggests that the price of Dogecoin could skyrocket from here to $0.6. However, the unpredictable nature of the cryptocurrency market also points to the possibility of a pullback after reaching this peak to trigger a retest of around $0.45 before resuming its rise. path.
At the time of writing, Dogecoin is trading at $0.316, and a rally to $0.60 would mark an impressive 90% increase from the current price. Interestingly, Dogecoin has shown resistance at $0.31, recovering from this level several times over the past 24 hours.
However, it has yet to show the strong bullish momentum needed to start a bullish move. If Dogecoin struggles to break above $0.316, it risks experiencing another short-term decline. In terms of support, $0.31 and $0.30 are the two main levels to take into account. Resistance levels are around $0.33, $0.35, and $0.40.
Featured image created with Dall.E, chart from Tradingview.com
