Dogecoin prices have been in a state of correction and consolidation since the first week of December, after weeks of crazy gains that saw the highest price just below $0.48. The price action over the past 24 hours and 7 days has been trending downwards, and the RSI indicator also reflects a corresponding decline.
Cryptocurrency analyst Master Kenobi recently drew attention to this notable development in the Dogecoin Relative Strength Index (RSI), highlighting its earlier breakout above 90% and comparing the current bull run to patterns observed during DOGE’s 2021 rally. Compare.
DOGE RSI reflects the performance of the 2021 bull run
Master Kenobi’s recent update to X outlines the striking similarities between Dogecoin’s RS| levels in the current cycle and those observed in the early stages of the 2021 bull run. In both cases, the RSI reached 90, well above the 70 threshold for overbought conditions. In particular, the RSI indicator shows that Dogecoin prices reached overbought conditions in November 2024, but continued to climb until early December.
Interestingly, the peak of the 2021 rally was followed by a significant cooling, with the RSI falling to 43% and the Dogecoin price plummeting 55% in 25 days. Additionally, Kenobi highlighted the 2021 Dogecoin rally during which the RS| The 40 reading fluctuates between the two key lines, a pattern that may repeat itself in the current bull market.
This time, while the RSI followed a similar reversal trajectory after reaching the 90 overbought condition, the price action was significantly less dramatic. In the 35 days since the RSI peaked, the Dogecoin price has experienced a smaller drop of 28%, suggesting that it is now more stable than in the previous bull cycle.
What is the price of Dogecoin? Key dates to watch
Currently, Dogecoin’s RSI is currently around 43 and looks set to drop further to 40. While the 2021 pattern cannot predict what will happen next, we can get an idea of what to expect. If the pattern repeats itself, we could see the RSI bounce back to a 90 reading at least two more times this cycle.
In a previous analysis, Master Kenobi noted that the time intervals between key RSI peaks in Dogecoin’s market cycles are shrinking. From 260 days in the first cycle, to 240 days in the second cycle, the current cycle is now 225 days. In addition, the RSI has always stayed at similar levels, which indicates a certain degree of predictability in its behavior.
Kenobi also highlighted that DOGE appears to be slightly ahead of historical trends, with the RSI remaining above its moving averages. This suggests that the current bull cycle may still have room to grow, especially as the industry moves into a more crypto-friendly landscape in the U.S. and other countries.
Looking ahead, crypto analyst Master Kenobi highlighted January 2 as a key date to watch for Dogecoin. At the time of writing, Dogecoin is trading at $0.362, down 5% in the past 24 hours and 13.3% in the past seven days.
