Dogecoin’s price has been pretty flat since early December, after a big run-up to almost $0.48. Recently, it’s been dipping, and that’s reflected in its RSI (Relative Strength Index).
RSI Mirrors 2021’s Bull Run
Crypto analyst Master Kenobi noticed something interesting: Dogecoin’s RSI is acting a lot like it did during the 2021 bull market. Both times, the RSI shot way past 70 (the usual “overbought” level), hitting 90. In 2021, this super-high RSI was followed by a huge price drop—a 55% plunge over 25 days! The RSI bounced between roughly 90 and 40 during that period.
A More Stable Doge?
This time around, things are a bit different. After the RSI hit 90 in November 2024, the price only dropped about 28% over 35 days. That’s significantly less volatile than in 2021.
What’s the Prediction?
Currently, the RSI is around 43 and might drop to 40. While the past doesn’t perfectly predict the future, if the pattern repeats, we could see the RSI hit 90 at least twice more. Kenobi also noted that the time between RSI peaks is getting shorter, suggesting a faster cycle. Plus, Dogecoin’s RSI is staying above its moving average, hinting at further potential growth, especially with increasing crypto-friendliness in some countries.
Key Dates to Watch
Kenobi points to January 2nd as a potentially important date for Dogecoin. As of now, Dogecoin is trading around $0.362, down about 5% in the last 24 hours and 13.3% over the past week.
