Dogecoin price drops to $0.31 after RSI reaches 59: Historical context and potential bullish signals

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In the past two weeks to the last 24 hours, the price of Dogecoin (DOGE) has continued to decline, especially after dropping to $0.31, although it has yet to form a clear upward momentum. The Relative Strength Index (RSI) has also shown a similar downward trend during this period, and cryptocurrency analyst KrissPax pointed out on social media platform X that the current RSI for Dogecoin is 59, a level that may be closely related to the bullish potential of the market cycle.

Dogecoin's RSI at 59: Historical context

According to KrissPax's analysis, the current RSI for Dogecoin is 59, a technical signal worth paying attention to. Notably, this analysis is based on the weekly time frame chart for Dogecoin. Since early December, Dogecoin's weekly RSI has been in a downward trend, having previously surged above 90 due to strong buying pressure, forming an overbought condition. During this period, Dogecoin faced enormous buying pressure, leading to a significant price increase. However, this also led to excessive buying in the market, followed by a correction, with the RSI dropping below 70 and 60, thereby reinforcing bearish sentiment.

Interestingly, Dogecoin's weekly RSI has currently stabilized at 59, maintaining around this level since December 16. This state of stability may indicate a temporary halt in selling pressure, or it may suggest that the price trend of Dogecoin is about to undergo a more significant change.

Insights from historical data

The historical data shared by KrissPax provides strong support for the current RSI level. The last time Dogecoin's weekly RSI approached the level of 59 was on October 29, when the price of the meme coin was around $0.15. A few weeks later, the DOGE price experienced a strong rebound, ultimately soaring to a peak of $0.475. This historical event indicates that when Dogecoin's RSI hovers around 59, the price often welcomes a stunning surge.

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