The Dogecoin worth has been caught in a state of correction and consolidation because the first week of December after a loopy multi-week rally that saw it peaking slightly below the $0.48 worth stage. Recent worth motion up to now 24 hours and 7 days has been riddled by declines, with the RSI indicator reflecting a corresponding drop.
Crypto analyst Master Kenobi recently drew attention to this notable improvement in Dogecoin’s Relative Strength Index (RSI), highlighting its earlier break above 90% and evaluating the present bull market with the patterns noticed throughout DOGE’s 2021 rally.
DOGE RSI Mirrors That Of The 2021 Bull Market
Master Kenobi’s current replace on X outlines a putting similarity between Dogecoin’s RSI ranges in the course of the present cycle and people noticed within the early phases of the 2021 bull market. In each situations, the RSI reached 90, which is much above the 70 threshold of overbought situations. Particularly, the RSI indicator reveals that the Dogecoin worth reached overbought situation in November 2024 however continued to climb till early December.
Interestingly, the 2021 rally’s peak was adopted by a big cooldown, with the RSI dropping to 43% and the Dogecoin worth plummeting by 55% over a 25-day interval. Furthermore, Kenobi highlighted the RSI’s oscillation between two key strains on the 90 and 40 readings in the course of the 2021 Dogecoin rally, which is a sample that would repeat itself within the present bull market.
This time round, whereas the RSI has adopted an identical trajectory of reversing after hitting 90 overbought situation, the worth motion has been noticeably less severe. Over the 35 days because the RSI’s peak, the Dogecoin worth has skilled a lesser 28% decline, which suggests it’s now extra stabilized than it was within the earlier bull cycle.
What To Expect For Dogecoin Price?—Key Dates To Watch
As it stands, the Dogecoin RSI is at present round 43 and appears like it’s going to decline additional to 40. While the 2021 sample doesn’t predict what’s going to occur subsequent, we will have an thought of what could play out next. If the sample have been to repeat itself, we might see the RSI rebounding in the direction of the 90 studying no less than two extra instances this cycle.
In an earlier evaluation, Master Kenobi identified a narrowing timeframe between key RSI peaks throughout Dogecoin’s market cycles. From 260 days within the first cycle to 240 days within the second, and now 225 days within the ongoing cycle. Furthermore, the RSI constantly halts at related ranges, which showcases a level of predictability in its conduct.
Kenobi additionally emphasised that DOGE seems to be slightly ahead of historical trends, and the RSI is holding above its shifting common. This means that the present bull cycle should still have room for development, particularly because the trade strikes right into a extra crypto-favorable panorama within the US and different nations.
Looking forward, crypto analyst Master Kenobi highlights January 2, which stands out as a pivotal date to observe for Dogecoin. At the time of writing, the Dogecoin worth is buying and selling at $0.362 and is down by 5% and 13.3% up to now 24 hours and 7 days, respectively.
Featured picture created with Dall.E, chart from Tradingview.com
