Dogecoin RSI Returns To Pre-Launch Levels, Analyst | Crypto News
Dogecoin’s latest two-week chart analysis suggests the cryptocurrency may very well be gearing up for a new explosive rally. According to trader and market analyst Trader Tardigrade, the Relative Strength Index (RSI) for Dogecoin has settled at ranges related to those seen before price rallies in the past two years or so.
This technical statement is based on Dogecoin’s regular uptrend along a long-standing assist line since 2023 and factors to its price motion at the moment being in a attainable early stage of accumulation before another leg upward.
Dogecoin RSI Now Showing Pre-Breakout Signals
The RSI is an indicator that has constantly aligned with Dogecoin’s strongest rallies in this cycle. According to the current 2-week candlestick setup shared by Trader Tardigrade, the RSI is at the moment trading steady within the same low vary that has preceded Dogecoin’s earlier upward rises since 2023.
Each of the three major RSI dips, as shown on the price chart below, has coincided with price retests of the crimson ascending trendline. This event is notable because the first two dips had been adopted by vital upward actions in the Dogecoin price. Right now, the current RSI place is at its third dip, and it may be inferred that the meme coin could once again be approaching a launch level related to those that led to past price surges.
The long-term assist trendline drawn from mid-2023 has acted as a dependable price base for Dogecoin’s recovery cycles. Price motion has examined this line a number of occasions without breaking below it, and this has led to the creation of increased highs and increased lows.
Dogecoin 2W Candlestick Price Chart. Source: Trader Tardigrade On X
Although Dogecoin broke below the trendline in the center of October, this breakdown was very temporary with a long wick. Based on Dogecoin’s price motion in October, the most current interplay with this trendline is just above $0.17. This latest interplay has been highlighted with stability above this price stage, and this is another early signal of technical strength.
What To Expect If The Pattern Holds
If this recurring construction between RSI and price maintains its consistency, Dogecoin may very well be about to embark on its third notable bullish run since early 2024. The most attainable state of affairs is another rally that performs out over a number of weeks, as seen in the past two rallies.
The last rally noticed the Dogecoin price just around $0.5 in December 2024. Therefore, another rally from this level will see the creation of another increased high above $0.5 at least. The projection within the analyst’s chart, which is based on how the last rally performs out, factors to a goal around $0.8.
At the time of writing, Dogecoin is trading at $0.1877, up by 0.5% in the past 24 hours. Reaching $0.8 will translate to new all-time highs and a 228% increase from the current price stage.
As long as the RSI holds its current base and the price stays above the ascending assist, the sentiment surrounding Dogecoin could progressively shift from consolidation to rally alongside the remainder of the crypto market.
Featured image from Unsplash, chart from TradingView
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