Dogecoin price has continued its decline over the past two weeks until the last 24 hours. Dogecoin in particular has still has to start a remarkable momentum above the $0.30 threshold, although it has mostly held above $0.31. Amid this price drop, the Relative Strength Index (RSI) indicator has reported a similar decline noted by crypto analyst KrissPax on social media platform X. He notes that Dogecoin’s RSI is reaching 59, a level associated with bullish potential in the current market cycle.
Dogecoin RSI at 59: Historical Context
According to crypto analyst KrissPax on the social media platform XDogecoin’s RSI at 59 is an important technical signal. Specifically, the technical analysis is based on Dogecoin’s weekly time frame chart. According to the chart, Dogecoin’s weekly RSI has been in a downward trend since early December after reaching a high of over 90.
During this time, the meme coin was under extreme buying pressure, resulting in overbought conditions. From here, Dogecoin experienced a sharp decline in RSI, triggered by strong selling pressure from the ownerswhich caused the price of Dogecoin to drop significantly. The correction pushed the RSI down the 70s and 60s, reinforcing the bearish sentiment over this period.
Interestingly, Dogecoin’s weekly RSI has now stabilized at 59 and has remained at this level since December 16th. While this stabilization could indicate a temporary pause in selling pressure, it could also mean something more significant for Dogecoin’s price action. Historical data shared by KrissPax highlights this possibility.
The last time Dogecoin’s weekly RSI hovered at 59 was on October 29, when the meme coin was priced at around $0.15. What followed was a remarkable rally. The price of Dogecoin skyrocketed in the following weeks, reaching a high of $0.475.
Potential for a bullish breakout amid bearish sentiment
Dogecoin’s weekly RSI at 59 suggests that Dogecoin could be preparing for another increase in the coming weeks. As KrissPax speculates, this suggests that Dogecoin price could break out to $0.6 from here. However, the unpredictability of the crypto market also suggests the possibility of a retracement after reaching this high, which could lead to a retest around $0.45 before resuming its upward trajectory.
At the time of writing, Dogecoin is trading at $0.316, and a rise to $0.60 would mark an impressive 90% increase from the current price. Interestingly, Dogecoin has shown resilience at $0.31 and has recovered from this level several times in the last 24 hours.
However, it still lacks the strong upward momentum needed to initiate an upward move. If Dogecoin struggles to break above $0.316, it risks another short-term decline. As for support, it is $0.31 and $0.30 Two main levels to keep an eye on. Resistance levels are around $0.33, $0.35, and $0.40.
Featured image created with Dall.E, chart from Tradingview.com