Dogecoin price has been stuck in a state of correction and consolidation since the first week of December after a crazy multi-week rally that… I saw her climax Just below the $0.48 price level. Recent price action over the past 24 hours and seven days engulfed by declines, With the RSI reflecting the corresponding decline.
Cryptocurrency Analyst Master Kenobi Recently attracted attention To this remarkable development in Dogecoin’s Relative Strength Index (RSI), highlighting its previous breakout above 90% and comparing the current bull market to the patterns observed during the 2021 DOGE rally.
The DOGE RSI reflects the 2021 bull market
Master Kenobi’s latest update on Overbought. In particular, the Relative Strength Index shows that Dogecoin price reached an overbought state in November 2024 but continued to rise until early December.
Interestingly, the peak of the rally in 2021 was followed by a significant slowdown, with the RSI falling to 43% and the Dogecoin price falling by 55% over 25 days. Furthermore, Kenobi highlighted that the RSI fluctuated between two major lines at 90 and 40 readings during the 2021 Dogecoin rally, a pattern that could repeat itself in the current bull market.
This time, while the RSI followed a reversal-like path after reaching 90 overbought conditions, the price action was… Significantly less risky. Over the 35 days since the RSI peak, Dogecoin price has seen a lower decline of 28%, indicating that it is now more stable than it was in the previous bull cycle.
What to expect regarding Dogecoin price? —Key dates to watch for
At the moment, the Dogecoin RSI is currently around 43 and it looks like it will drop further to 40. While the 2021 pattern does not predict what will happen next, we can get an idea of What could happen next. If the pattern repeats itself, we could see the RSI bounce towards the 90 reading at least two more times this cycle.
In a previous analysis, Master Kenobi noted a narrow time frame between major RSI peaks across Dogecoin market cycles. From 260 days in the first cycle to 240 days in the second, and now 225 days in the continuous cycle. Furthermore, the RSI constantly stops at similar levels, showing a degree of predictability in its behavior.
Kenobi also stressed that DOGE looks like this Slightly ahead of historical trends, The Relative Strength Index remains above its moving average. This suggests that the current bull cycle may still have room to grow, especially as the industry transitions to a more crypto-friendly landscape in the US and other countries.
Looking ahead, cryptocurrency analyst Master Kenobi highlights January 2, which stands out as a pivotal date for Dogecoin monitoring. At the time of writing, Dogecoin price is trading at $0.362 and is down 5% and 13.3% over the past 24 hours and seven days respectively.
Featured image created with Dall.E, chart from Tradingview.com