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

The price of Dogecoin has continued to decline over the past two weeks in the past 24 hours. In particular, Dogecoin has It hasn’t started yet Noticeable momentum above the $0.30 threshold, Although it largely held above $0.31. Amid this price decline, the Relative Strength Index (RSI) recorded a similar decline, which was noted by cryptocurrency analyst KrissPax on the social media platform

Dogecoin RSI at 59: Historical Context

According to cryptocurrency analyst KrissPax On the social media platform XDogecoin’s RSI at 59 is a key technical signal. It is worth noting that technical analysis is based on the weekly chart of Dogecoin. According to the chart, Dogecoin’s weekly RSI has been on a downward trajectory since early December, after peaking above 90.

During this time, the meme coin was under intense buying pressure, resulting in overbought conditions. Hence, Dogecoin saw a sharp decline in the Relative Strength Index (RSI) caused by Intense selling pressure from ownersCausing the price of Dogecoin to drop significantly. Correction Push the RSI down 70 and 60 levels, which reinforces the downtrend during this period.

Interestingly, Dogecoin’s weekly RSI has now settled at 59 and has remained around this level since December 16. While this stabilization may indicate a pause in selling pressure, it may also indicate something more significant for Dogecoin’s price trajectory. Historical data shared by KrissPax confirms this possibility.

The last time Dogecoin’s weekly RSI was at 59 was on October 29, when the meme price was around $0.15. What followed was a remarkable rally. Dogecoin price rose over the subsequent weeks, peaking at $0.475.

Potential bullish breakout amid bearish sentiment

Dogecoin’s weekly RSI at 59 indicates that Dogecoin may be poised for another rally in the coming weeks. As predicted by KrissPax, this suggests that the price of Dogecoin could rise from here to $0.6. However, the unpredictable nature of the cryptocurrency market also points to the possibility of a rebound after reaching this peak to cause a retest around $0.45 before the rally resumes. path.

At the time of writing, Dogecoin is trading at $0.316, and a rise to $0.60 would represent a staggering 90% increase from the current price. Interestingly, Dogecoin showed resilience at $0.31, as it has bounced from this level several times in the past 24 hours.

However, it has yet to show the strong upward momentum needed to start an upward move. If Dogecoin struggles to break above $0.316, it risks facing another decline in the short term. In terms of support, $0.31 and $0.30 are Two main levels to monitor. Resistance levels are around $0.33, $0.35, and $0.40.

Featured image created with Dall.E, chart from Tradingview.com