Dogecoin's price entered an adjustment and consolidation phase starting from the first week of December, after experiencing a period of crazy growth, peaking at nearly $0.48. In the past 24 hours and 7 days, Dogecoin's price has been declining, and the RSI indicator also shows a corresponding downward trend.
Cryptocurrency analyst Master Kenobi recently mentioned that Dogecoin's Relative Strength Index (RSI) has shown some notable changes, particularly as it once broke through 90%, comparing the current bull market to the trend during Dogecoin's rebound in 2021.
Similarities between DOGE RSI and the 2021 bull market
Kenobi mentioned in a recent X tweet that the current RSI level of Dogecoin in this cycle has significant similarities to the trend at the beginning of the 2021 bull market.
During both periods, the RSI soared to 90, far exceeding the overbought level of 70. Especially in November 2024, Dogecoin's RSI once reached an overbought state, then continued to rise until it began to decline in early December.
After the peak of Dogecoin's rebound in 2021, the RSI quickly fell to 43%, with the price plummeting 55% within 25 days. Kenobi also pointed out that during the rebound in 2021, the RSI fluctuated between 90 and 40, and this pattern may reappear in the current bull market.
Although the RSI reached the overbought level of 90 this time and the trend began to reverse, the price correction was not as drastic as in 2021.
What will happen to Dogecoin's price? Key dates to watch out for
Currently, the RSI of Dogecoin is around 43, suggesting the possibility of further decline to 40. While the trend of 2021 may not fully predict what comes next, we can identify some trends from it. If this pattern repeats, the RSI could rebound at least twice in this cycle, reaching the overbought level of 90.
In previous analyses, Master Kenobi noted that the time intervals between peaks in the RSI during Dogecoin's market cycles are gradually shortening. From the first cycle of 260 days, to the second cycle of 240 days, down to the current cycle of 225 days. Additionally, the RSI has remained at similar levels, indicating a degree of predictability in its behavior.
Kenobi also pointed out that Dogecoin currently 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 U.S. and other countries shift their attitudes toward cryptocurrencies, bringing more positive news to the market.
Looking ahead, Master Kenobi emphasized January 2 as an important date for Dogecoin that investors should pay attention to.
Recently, I intended to ambush a potential coin that is ready to explode, doubling up is quite simple, and I am also looking for some potential coins to hold until the end of the year, expecting a space of over 10 times is not a problem. If you want to follow me, leave a message, follow, like, and gold. Skirt
