The price of Dogecoin has entered a phase of adjustment and consolidation since the first week of December, after a period of crazy growth, with the highest price close to $0.48. In the past 24 hours and 7 days, the price of Dogecoin has been falling, and the RSI indicator also shows a corresponding downward trend.
Cryptocurrency analyst Master Kenobi recently mentioned that Dogecoin’s relative strength index (RSI) showed some noteworthy changes, especially that it once broke through 90%, and compared the current bull market with the trend of Dogecoin’s rebound in 2021.
DOGE RSI Similarities to the 2021 Bull Run
Kenobi mentioned in a recent X tweet that Dogecoin’s RSI levels in the current cycle bear a lot of similarities to the early stages of the 2021 bull run.
In both periods, the RSI soared to 90, far exceeding the overbought level of 70. In particular, in November 2024, Dogecoin's RSI reached an overbought state, and then continued to rise until early December when it began to fall back.
After the peak of Dogecoin’s 2021 rally, the RSI quickly fell to 43%, and the price plummeted 55% in 25 days. Kenobi also pointed out that during the 2021 rally, the RSI fluctuated between 90 and 40, a pattern that may reappear in the current bull run.
Although the RSI also reached the overbought level of 90 this time and the trend began to reverse, the price pullback was not as severe as in 2021. Since the RSI peaked, the price of Dogecoin has only fallen by 28%, showing that it is more stable than the last bull run.
What will happen to the price of Dogecoin? Key dates to watch
Currently, Dogecoin's RSI is around 43 and seems likely to fall further to 40. While the trend in 2021 is not necessarily a complete prediction of what will happen next, we can pick out some trends. If this pattern repeats itself, the RSI may rebound at least two more times in this cycle to reach the overbought level of 90.
In a previous analysis, Master Kenobi mentioned that the time intervals between RSI peaks in Dogecoin market cycles are gradually shortening. From 260 days in the first cycle, to 240 days in the second cycle, and to 225 days in the current cycle. In addition, the RSI has been maintained at similar levels, which shows that its behavior is somewhat predictable.
Kenobi also pointed out that Dogecoin currently appears to be slightly ahead of the historical trend, with the RSI remaining above its moving average. This suggests that the current bull cycle may still have room to grow, especially as the attitude towards cryptocurrencies in the United States and other countries changes, which brings more positives to the market.
Looking ahead, Master Kenobi highlighted January 2 as an important date for Dogecoin that deserves investors’ attention.
Dogecoin Price
As of writing, Dogecoin is trading at $0.362, down 5% in the past 24 hours and 13.3% in the past seven days.
