Since the first week of December, the price of Dogecoin has experienced correction and consolidation, with the previous peak close to $0.48. The price has continued to fall in the past 24 hours and 7 days, and the relative strength index (RSI) has also declined. Analyst Master Kenobi pointed out that the current RSI has reached 43, which is similar to the bull market in 2021, when it reached 90 and the price subsequently fell sharply. Although the current price correction is small, showing a certain stability, future trends still need to be paid attention to, especially the key date of January 2.
Dogecoin price has been in correction and consolidation since the first week of December, following a multi-week crazy rally that peaked just below the $0.48 price level. The recent price action over the past 24 hours and 7 days has been filled with declines, and the RSI indicator has fallen accordingly.
Cryptocurrency analyst Master Kenobi recently drew attention to this remarkable development of Dogecoin’s relative strength index (RSI), highlighting its earlier breakout above 90% and comparing the current bull run to the patterns observed during Dogecoin’s 2021 rally.
DOGE RSI reflects the 2021 bull run
Master Kenobi’s recent update to X outlines striking similarities between Dogecoin’s RSI 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 2021 rally peaked and was followed by a sharp cooldown, with the RSI falling to 43% and the price of Dogecoin plummeting 55% in 25 days. In addition, Kenobi highlighted the oscillation of the RSI between two key lines of 90 and 40 readings during the 2021 Dogecoin rally, a pattern that may repeat itself in the current bull run.
This time around, while the RSI followed a similar reversal trajectory after reaching overbought conditions at 90, the price action was significantly less severe. In the 35 days since the RSI peaked, the Dogecoin price has experienced a 28% decline, suggesting that it is now more stable than in the previous bull cycle.
What to expect from Dogecoin price? - Key dates to watch
Currently, the Dogecoin RSI is currently around 43 and looks set to fall further to 40. While the 2021 pattern cannot predict what will happen next, we can get an idea of what to expect. If this pattern repeats itself, we could see the RSI bounce back to 90 at least twice this cycle.
In an earlier analysis, Master Kenobi noted that the time range between key RSI peaks in Dogecoin market cycles is shrinking. From 260 days in the first cycle to 240 days in the second cycle, the ongoing cycle is now 225 days. In addition, the RSI has always stayed at similar levels, which shows a certain degree of predictability in its behavior.
Kenobi also highlighted that DOGE appears to be slightly ahead of historical trends, while the RSI remains above its moving average. This suggests that the current bull cycle may still have room to grow, especially if the industry moves into a more favorable landscape for cryptocurrencies in the U.S. and other countries.
Looking ahead, cryptocurrency analyst Master Kenobi highlighted January 2 as a key date to watch for Dogecoin. As of writing, Dogecoin is trading at $0.31, down 5% in the past 24 hours and 13.3% in the past seven days.
