Dogecoin's price has been in a state of adjustment and consolidation since the first week of December, following several weeks of frenzied gains, with a peak just below $0.48. The price trend over the past 24 hours and 7 days has been downward, with the RSI reflecting the corresponding decline.
Cryptocurrency analyst Master Kenobi recently drew attention to this significant development in the Dogecoin Relative Strength Index (RSI), highlighting its earlier breakthrough of 90% and comparing the current bull market to the patterns observed during the DOGE rebound in 2021.
DOGE RSI reflects the performance of the 2021 bull market.
Master Kenobi's recent update on X outlined the striking similarity between the RS| levels of Dogecoin in the current cycle and those observed in the early stages of the 2021 bull market. In both cases, the RSI reached 90, well above the overbought threshold of 70. Notably, the RSI indicates that Dogecoin's price reached an overbought state in November 2024 but continued to climb until early December.
Interestingly, there was a significant cooling after the 2021 rebound peak, with the RSI dropping to 43% and Dogecoin's price plummeting by 55% within 25 days. Additionally, Kenobi highlighted the fluctuations of the RSI between the key lines of 90 and 40 during the 2021 Dogecoin rebound, which may repeat in the current bull market.
This time, although the RSI followed a similar reversal trajectory after reaching the overbought state of 90, the price movement has clearly been much less dramatic. In the 35 days since the RSI peaked, Dogecoin's price experienced a smaller decline of 28%, suggesting it is now more stable than in the previous bull market cycle.
What is Dogecoin's price? A key date to watch.
Currently, the Dogecoin RSI is approximately 43 and appears set to decline further to 40. While the patterns from 2021 cannot predict what will happen next, we can infer what might occur next. If the pattern repeats, we could see the RSI rebound at least two more times to a reading of 90 during this cycle.
In previous analyses, Master Kenobi noted that the time intervals between key RSI peaks in Dogecoin's market cycles are narrowing. From 260 days in the first cycle to 240 days in the second cycle, the current cycle now stands at 225 days. Furthermore, the RSI consistently remains at similar levels, indicating a degree of predictability in its behavior.
Kenobi also emphasized that DOGE seems to slightly lead historical trends, with the RSI remaining above its moving average. This suggests that the current bull market cycle may still have room for growth, especially as the industry enters a more favorable landscape for cryptocurrencies in the U.S. and other countries.
Looking ahead, cryptocurrency analyst Master Kenobi emphasizes that January 2 is a key date to watch for Dogecoin. At the time of writing, Dogecoin's price is $0.362, having declined 5% and 13.3% over the past 24 hours and 7 days respectively.
