After the recent decline, the price of Dogecoin has been hovering around $0.31, putting the cryptocurrency in a consolidation phase.

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Therefore, this price level represents a temporary decline in a long-term upward trend. On the weekly timeframe, the technical indicators are in a downward channel, which usually indicates a bullish breakout in similar situations.

On the bullish side, the relative strength index (RSI) for Dogecoin's 4-hour chart is 20.90, indicating an oversold condition.

This level is well below the midpoint of 50, indicating that selling pressure is on the rise. Typically, an RSI level below 30 suggests a bullish reversal as it indicates that the asset is oversold.

Traders believe that once the price rebounds due to increased buying pressure, this oversold condition presents a potential opportunity to enter the market.

However, Dogecoin's history shows that it has always managed to rebound strongly after consolidation.

If Dogecoin performs similarly to 2020 and 2021, experts predict that green candles will appear in the coming weeks.

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