Emily Walker
Dogecoin has been in a correction phase since early December after a significant surge that drove its price to just under $0.48. The past week has seen a downward trend in price, as indicated by a declining Relative Strength Index (RSI).
Crypto analyst Master Kenobi has noted the recent changes in Dogecoin’s RSI, which previously peaked above 90%. He compares the current market behavior with the trends seen during Dogecoin’s 2021 rally.
Current RSI Pattern Resembles 2021 Bull Run
In a recent post, Master Kenobi pointed out the striking similarity between the current Dogecoin RSI and that of the 2021 rally. Both periods saw the RSI exceed 90, indicating overbought conditions beyond the typical 70 level. In November 2024, the RSI hit this level but continued to rise until early December.
Notably, following the peak of the 2021 rally, the RSI fell to 43%, and during a 25-day span, Dogecoin’s price dropped by 55%. Kenobi also observed a recurring RSI pattern oscillating between 90 and 40 during that rally, which could potentially repeat itself this time.
Currently, while the RSI has retraced after reaching 90, the decline in Dogecoin’s price has been less drastic than in previous cycles. In the 35 days following the RSI’s peak, the price has only decreased by 28%, showing more stabilization compared to the earlier bull market.
Looking Ahead: Important Dates for Dogecoin
Currently, Dogecoin’s RSI sits around 43 and may dip further to 40. While past patterns don’t guarantee future movements, they offer insight into potential developments. If history were to repeat, we might expect the RSI to approach 90 a couple more times during this cycle.
Kenobi previously highlighted the shortening intervals between key RSI peaks in Dogecoin’s history: from 260 days in the first cycle to 240 in the second, now down to 225 days in the current cycle. The RSI consistently reacts at similar levels, indicating some predictability.
Furthermore, Kenobi noted that DOGE seems to be slightly advancing compared to historical trends, as its RSI remains above its moving average. This signals possible growth for the current bull cycle, especially as the market becomes more favorable for cryptocurrencies in the US and globally.
Looking ahead, January 2 is identified as a crucial date for Dogecoin, according to Master Kenobi. At the moment, Dogecoin is trading at $0.362, reflecting a 5% decrease over the last 24 hours and a 13.3% drop over the past week.