Dogecoin's price entered a phase of adjustment and consolidation starting from the first week of December, after experiencing a period of crazy growth, peaking close to $0.48. In the past 24 hours and 7 days, Dogecoin's price has been declining, and the RSI indicator also shows a corresponding downward trend.
Cryptocurrency analyst Master Kenobi recently mentioned that Dogecoin's relative strength index (RSI) has shown some notable changes, especially as it once broke through 90%, and he compared the current bull market to the trends during Dogecoin's rebound in 2021.
Similarities between DOGE RSI and the 2021 bull market
Kenobi mentioned in a recent X tweet that the current cycle's RSI level of Dogecoin bears a strong resemblance to the trends at the beginning of the 2021 bull market.
During both periods, the RSI soared to 90, far exceeding the overbought level of 70. Especially in November 2024, Dogecoin's RSI reached overbought status before continuing to rise until it began to pull back in early December.
After the peak of Dogecoin's rebound in 2021, the RSI quickly fell to 43%, and the price plummeted by 55% within 25 days. Kenobi also noted that during the rebound in 2021, the RSI fluctuated between 90 and 40, and this pattern may repeat in the current bull market.
Although the RSI reached the overbought level of 90 this time and the trend began to reverse, the price pullback was not as severe as in 2021.
What will happen to Dogecoin's price? Key dates worth paying attention to
Currently, the RSI of Dogecoin is around 43, and it seems there is a possibility of further decline to 40. While the trends from 2021 may not completely predict what comes next, we can identify some patterns. If this pattern repeats, the RSI could rebound at least two more times in this cycle, reaching the overbought level of 90.
In previous analyses, Master Kenobi noted that the time intervals between peaks of the RSI in Dogecoin's market cycles are gradually shortening. From 260 days in the first cycle, to 240 days in the second cycle, and now to 225 days in the current cycle. Moreover, the RSI has consistently maintained similar levels, indicating a certain predictability in its behavior.
Kenobi also pointed out that Dogecoin seems to be slightly ahead of historical trends, with the RSI consistently remaining above its moving average. This suggests that the current bull market cycle may still have room for growth, especially with the changing attitudes towards cryptocurrencies in the United States and other countries, bringing more positive news to the market.
Looking ahead, Master Kenobi emphasized January 2 as an important date for Dogecoin that investors should pay attention to.
Recently, I planned to set up an ambush for a potential coin that is about to explode, doubling is quite easy, and I am also looking for some potential coins to hold until the end of the year, with an expected growth of over 10 times being no problem. If you want to follow my insights, leave a message, follow, and like, Gold. Skirt.
