Dogecoin Price Reaches An RSI Of 59 After Dropping To $0.31, Here’s What Happened The Last Time

The Dogecoin price has continued its decline over the past two weeks into the last 24 hours. Particularly, Dogecoin has yet to start a notable momentum above the $0.30 threshold, although it has largely held up above $0.31. Amidst this price decline, the Relative Strength Index (RSI) indicator has relayed a similar decline, which was noted on social media platform X by crypto analyst KrissPax. He points to Dogecoin’s RSI 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 social media platform X, Dogecoin’s RSI at 59 is a key technical signal. Notably, the technical analysis is based on the Dogecoin weekly timeframe chart. According to the chart, Dogecoin’s weekly RSI has been in a downward trajectory since early December, following a peak above 90.

During this time, the meme coin was under extreme buying pressure, leading to overbought conditions. From here, Dogecoin experienced a sharp decline in the RSI triggered by intense selling pressure from holders, which caused Dogecoin’s price to drop significantly. The correction pushed the RSI below the 70 and 60 levels, reinforcing 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 might suggest a temporary pause in selling pressure, it could also signify something more significant for Dogecoin’s price trajectory. Historical data shared by KrissPax underscores this possibility.

The last time Dogecoin’s weekly RSI hovered at 59 was on October 29, when the meme coin was priced at approximately $0.15. What followed was a remarkable rally. Dogecoin’s price surged over the subsequent weeks, culminating in a peak of $0.475. 

Bullish Breakout Potential Amid Bearish Sentiment

Dogecoin’s weekly RSI at 59 suggests that Dogecoin could be gearing up for another surge in the coming weeks. As KrissPax speculated, this suggests that the Dogecoin price could break out from here up to $0.6.However, the unpredictable nature of the crypto market also points to the possibility of a retracement after hitting this peak to cause a retest around $0.45 before resuming its upward trajectory.

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 back from this level multiple times over the past 24 hours.

However, it has yet to display the strong upward momentum needed to initiate an upward move. If Dogecoin struggles to surpass $0.316, it risks experiencing another short-term decline. In terms of support, $0.31 and $0.30 are the two major 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