Emily Walker
Dogecoin’s price has been in a downward trend for the last two weeks, especially in the past 24 hours. It has not managed to gain significant momentum above the $0.30 mark, although it has remained above $0.31. This decline is mirrored by the Relative Strength Index (RSI), recently noted by crypto analyst KrissPax on the social platform X. He highlighted that Dogecoin’s RSI has reached 59, which traditionally indicates potential for price increases in the current market environment.
Analyzing Dogecoin’s RSI at 59
Crypto analyst KrissPax discussed the significance of Dogecoin’s RSI at 59 on social media. This analysis is based on weekly data for Dogecoin. The RSI has been decreasing since early December, following a peak above 90, which was a time of intense buying activity.
This period was characterized by overbought conditions, leading to a rapid decline in the RSI due to heavy selling pressure from investors, resulting in a noteworthy price drop for Dogecoin. The subsequent correction pushed the RSI below both the 70 and 60 thresholds, which intensified bearish feelings in the market.
Presently, the RSI for Dogecoin has stabilized at 59, maintaining this level since December 16. This stabilization could indicate a slowdown in selling pressures, possibly hinting at an important shift for Dogecoin’s price movement. Historical insights from KrissPax indicate that the last instance of the weekly RSI reaching 59 was on October 29 when Dogecoin was valued around $0.15. Following that, the price experienced a significant rise, peaking at $0.475 in the following weeks.
Potential for a Bullish Breakout Amid Negative Trends
The current RSI of 59 may suggest that Dogecoin is preparing for a potential price surge in the near future. As KrissPax envisages, this could lead the price to break towards $0.60. However, given the volatility of the cryptocurrency market, a pullback may occur after reaching such levels, prompting a retest around $0.45 before potentially moving upward again.
Currently, Dogecoin is priced at $0.316, and a rise to $0.60 would represent a remarkable 90% increase relative to today’s price. Notably, Dogecoin has shown the ability to bounce back from the $0.31 level multiple times within the last 24 hours.
Nevertheless, it has not yet exhibited the robust upward momentum required to launch a significant price increase. Should Dogecoin fail to exceed $0.316, it may face another brief decline. Important support levels to monitor are $0.31 and $0.30, while the resistance points lie around $0.33, $0.35, and $0.40.