Dogecoin price continued its decline over the past two weeks and over the past 24 hours. In particular, Dogecoin has not yet started notable momentum above the $0.30 threshold, although it largely held above $0.31. Amid this price decline, the Relative Strength Index (RSI) indicator relayed a similar decline, which was noted on social media platform X by crypto analyst KrissPax. He points out that Dogecoin’s RSI is reaching 59, a level associated with upside potential in the current market cycle.
Dogecoin RSI at 59: historical context
According to crypto analyst KrissPax on social media platformDogecoin’s RSI at 59 is a key technical signal. Notably, the technical analysis is based on the Dogecoin weekly 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 period, the meme coin was under extreme buying pressure, leading to overbought conditions. From there, Dogecoin saw a sharp decline in RSI triggered 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 been holding around this level since December 16. While this stabilization may suggest a temporary pause in selling pressure, it could also mean something more significant for Dogecoin’s price trajectory. 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’s price was around $0.15. What followed was a remarkable rally. Dogecoin price surged over the following weeks, peaking at $0.475.
Bullish breakout potential in bearish sentiment
Dogecoin’s weekly RSI at 59 suggests that Dogecoin could be preparing for another surge in the coming weeks. As KrissPax speculated, this suggests that Dogecoin price could break out from here to $0.6. However, the unpredictable nature of the crypto market also indicates the possibility of a retracement after hitting this high to cause a retest 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 resilience at $0.31, bouncing multiple times from this level over the past 24 hours.
However, it has yet to display the strong bullish momentum needed to initiate a bullish move. If Dogecoin struggles to rise above $0.316, it is likely to see further declines in the near term. In terms of support, $0.31 and $0.30 are the two major levels to monitor. Resistance levels are around $0.33, $0.35, and $0.40.
Featured image created with Dall.E, chart from Tradingview.com