Over the past two weeks, the price of Dogecoin has been on a downward trend, with no significant momentum above the $0.30 threshold. Despite this, it has managed to hold above $0.31. The Relative Strength Index (RSI) indicator has also shown a decline, with the RSI reaching 59, a level associated with bullish potential in the current market cycle, as noted by crypto analyst KrissPax on social media platform X.
KrissPax highlights the significance of Dogecoin’s RSI at 59 on the weekly timeframe chart, indicating a key technical signal. The RSI had been in a downward trajectory since early December after peaking above 90. This peak was a result of extreme buying pressure leading to overbought conditions, followed by a sharp decline triggered by intense selling pressure, causing a significant drop in Dogecoin’s price. The correction pushed the RSI below the 70 and 60 levels, reinforcing bearish sentiment during that period.
Despite the decline, Dogecoin’s weekly RSI has stabilized at 59 since December 16. Historical data shared by KrissPax shows that the last time the RSI hovered at 59 was on October 29, leading to a remarkable rally in Dogecoin’s price from $0.15 to a peak of $0.475.
The current RSI at 59 suggests that Dogecoin could be gearing up for another surge in the coming weeks, potentially breaking out to $0.60. However, the unpredictable nature of the crypto market also points to the possibility of a retracement after hitting this peak, with a retest around $0.45 before resuming its upward trajectory.
At the time of writing, Dogecoin is trading at $0.316, with the potential for a 90% increase to $0.60. The coin has shown resilience at $0.31, bouncing back multiple times over the past 24 hours. Despite this, it has yet to show strong upward momentum needed for a significant move. If Dogecoin struggles to surpass $0.316, it may experience another short-term decline. Support levels to watch are $0.31 and $0.30, while resistance levels are around $0.33, $0.35, and $0.40.
In conclusion, the current RSI level of 59 for Dogecoin indicates potential for a bullish breakout in the near future, with the possibility of reaching $0.60. However, market volatility and the need for strong upward momentum pose risks for short-term price movements. Investors should closely monitor support and resistance levels to make informed decisions in the evolving Dogecoin market.
