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Dogecoin’s most recent two-week chart evaluation implies the cryptocurrency might be preparing for a fresh explosive surge. As per trader and market analyst Trader Tardigrade, the Relative Strength Index (RSI) for Dogecoin has positioned itself at levels comparable to those observed prior to price surges in the last couple of years.
This technical insight is based on Dogecoin’s consistent uptrend along a long-established support line since 2023 and indicates its price movement is currently in a potentially early phase of accumulation prior to another rise.
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Dogecoin RSI Now Displaying Pre-Breakout Indicators
The RSI serves as a metric that has consistently correlated with Dogecoin’s most potent rallies in this cycle. Based on the present 2-week candlestick configuration shared by Trader Tardigrade, the RSI is currently trading steadily within the same low range that has preceded Dogecoin’s prior upward movements since 2023.
Each of the three significant RSI declines, as illustrated on the price chart below, has coincided with price retests of the red upward trendline. This occurrence is significant because the initial two declines were succeeded by remarkable upward shifts in the Dogecoin price. At present, the current RSI positioning is at its third drop, and it can be deduced that the meme coin may once more be nearing a launch point akin to those that resulted in previous price escalations.
The long-term support trendline drawn from mid-2023 has served as a dependable price base for Dogecoin’s rebound cycles. Price movement has tested this line several times without falling beneath it, leading to the formation of higher peaks and higher troughs.
Dogecoin 2W Candlestick Price Chart. Source: Trader Tardigrade On X
Although Dogecoin dipped below the trendline in mid-October, this drop was quite brief with a long wick. Based on Dogecoin’s price movement in October, the most recent interaction with this trendline is just above $0.17. This latest engagement has been marked by stability above this price point, indicating another initial sign of technical robustness.
What To Anticipate If The Pattern Persists
If this repeating structure between RSI and price retains its consistency, Dogecoin could be on the verge of initiating its third significant bullish trend since early 2024. The most likely outcome is another rally that unfolds over several weeks, akin to the last two surges.
The preceding rally pushed the Dogecoin price just around $0.5 in December 2024. Consequently, another rally from this juncture will result in the establishment of another higher high exceeding $0.5 at the very least. The projection within the analyst’s chart, based on how the previous rally unfolds, suggests a target around $0.8.
At the moment of writing, Dogecoin is priced at $0.1877, up by 0.5% in the preceding 24 hours. Achieving $0.8 will signify new all-time highs and a 228% increase from the current price level.
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Provided that the RSI maintains its current foundation and the price remains above the ascending support, the sentiment concerning Dogecoin may gradually transition from consolidation to rally alongside the overall crypto market.
Featured image from Unsplash, chart from TradingView
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