#重大空投观察 Dogecoin is about to rebound to $0.50

After the 'overbought' condition of Dogecoin cools down

After breaking through 208% in early November, Dogecoin (DOGE) has been consolidating in a narrow range between $0.35 and $0.48 for four weeks. The recent price adjustment of Dogecoin has led to a breakout of the upward trend line, indicating a potential shift to a bearish trend.

However, an analyst pointed out that based on a key technical indicator and recurring setups since March 2024, Dogecoin may be on the brink of another upward trend.

The upward trend of Dogecoin could happen 'at any moment'

Despite a 16% drop this week, cryptocurrency pattern analyst Trader Tardigrade noted that the strong overbought signal of Dogecoin's daily RSI has been reset.

The overbought condition of the Relative Strength Index (RSI) suggests that traders may sell the crypto asset, which could lead to a short-term decline in value.

Previously, when the RSI's overbought condition 'retracted' to 50 in March 2024, a strong upward trend appeared on its daily chart. According to the chart, the analyst hinted that a breakout above $0.50 could happen 'at any moment' in the coming days.

Data from data analysis platform Santiment also mentioned that the 'average dollar investment age' of DOGE is sending bullish signals. The average investment age of the crypto asset has decreased by 31% over eight weeks, indicating that dormant tokens are being re-circulated. Regarding the bullish momentum, the platform mentioned in an X post,

'Bull markets in 2017 and 2021 also stopped only when the average age of the assets started to “rise” (grow older) again.'

DOGE may experience liquidity fluctuations between $0.32 and $0.34

While the long-term trend remains bullish, Dogecoin may drop to between $0.32 and $0.34 to gather liquidity before showing higher highs. It has been observed that the recent low of DOGE at $0.365 was broken on November 26, but further liquidity lows remain around $0.34 and $0.32.

In March 2024, a similar bullish breakout created liquidity lows near $0.12 and $0.10, after which DOGE retraced and then continued this trend.