Dogecoin RSI Hits Historical Oversold Levels: Will It Mirror 2021?

The Relative Strength Index (RSI) for Dogecoin has reached historical oversold levels, sparking speculation that this popular meme coin could replicate its impressive parabolic rise seen in the 2021 bull market.

Key Takeaways

Dogecoin's RSI has entered historically oversold levels, hinting at potential for significant price gains.
Analyst Cryptollica indicates DOGE may replicate its 2021 bull cycle rally, potentially targeting $1.
Market patterns suggest a favorable phase for Dogecoin, with historical similarities noted in accumulation trends.
Current trading price of Dogecoin is around $0.137, with analysts predicting a possible rally to $0.70.

Dogecoin

Dogecoin's Potential for a Parabolic Rally as RSI Signals Oversold Conditions

Crypto analyst Cryptollica has pointed out that Dogecoin's price may be set for another significant rally, given its RSI entering oversold territory. In a post on X, Cryptollica explained that it's the fourth occurrence of such oversold conditions in the last 12 years and each time has led to substantial price shifts.

According to Cryptollica, whenever the DOGE RSI has dropped to such low levels, it has provided “epic buying opportunities,” leading to impressive returns for those who invested at those times. He emphasized that this scenario presents another major chance for potential gains. He reflected on previous instances where the RSI hit these lows, such as during the last market cycle when DOGE fell to $0.05.

Dogecoin
Source: Chart from Cryptollica on X

On its journey, Dogecoin reached an all-time high (ATH) of $0.74 after previously bottoming at $0.05, showcasing significant price appreciation. Cryptollica urged investors not to overlook this opportunity, suggesting that DOGE could aim for the psychological $1 mark in what could become a new ATH for the top meme coin.

Dogecoin Reflects Historical Accumulation Patterns

In another analysis shared on X, Cryptollica pointed out a similar DOGE/BTC pattern observed between the 2014-2017 and 2021-2026 accumulation phases. He claimed the structural similarities are striking and reassured that the current decline against Bitcoin should not be seen as fatal but rather as essential energy compression before a potential upward shift. He indicated that a breach of the green line on the chart could lead to an immediate change in risk appetite among traders.

Cryptollica suggested that Dogecoin is positioned to play a pivotal role in the altcoin market cycle, noting that the market is now in the final stage of a protracted compression against Bitcoin. Historically, such conditions often lead to significant volatility squeezes that trigger notable capital shifts from BTC to altcoins.

Separately, another crypto analyst, Bitcoinsensus, suggested that a leap to $0.70 for Dogecoin could be forthcoming. He noted that DOGE has been displaying a positive trend throughout the ongoing bull cycle, evident in its mini price cycles where it taps a support line before adjusting. Bitcoinsensus believes that if strong buying momentum returns to the crypto market, DOGE could be well-positioned to target the $0.70 range soon.

As of the latest data from CoinMarketCap, Dogecoin is trading at approximately $0.137, marking a decline over the past 24 hours.

Dogecoin
DOGE trading at $0.13 on the 1D chart | Source: DOGEUSDT on Tradingview.com