Dogecoin’s most recent analysis of its two-week chart indicates the potential for a new significant rally. Trader and market analyst Trader Tardigrade noted that the Relative Strength Index (RSI) for Dogecoin has settled at levels similar to those seen before previous price increases over the past couple of years.
This technical analysis is based on Dogecoin’s consistent upward trend along a support line since 2023, suggesting that the current price action may be in the early stages of accumulation before a possible upward movement.
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Dogecoin RSI Now Showing Pre-Breakout Signals
The RSI has historically aligned with Dogecoin’s strongest rallies in this cycle. The current 2-week candlestick setup, as shared by Trader Tardigrade, shows that the RSI is currently stable within a low range that has preceded previous upward movements in Dogecoin’s price since 2023.
The price chart demonstrates that each of the three major RSI dips coincided with price retests of the red ascending trendline, preceding significant upward movements in Dogecoin’s price. With the RSI currently at its third dip, there is a suggestion that Dogecoin may be approaching a launch point similar to previous price surges.
The long-term support trendline from mid-2023 has consistently acted as a price base for Dogecoin’s recovery cycles, leading to higher highs and higher lows over time.
Dogecoin 2W Candlestick Price Chart. Source: Trader Tardigrade On X
What To Expect If The Pattern Holds
If the correlation between RSI and price continues, Dogecoin could be on the brink of its third significant bullish run since early 2024. This could result in a rally over multiple weeks, similar to previous patterns.
The last rally in December 2024 saw Dogecoin’s price reach around $0.5, suggesting that a new rally could push the price above $0.5 and potentially towards $0.8 based on the analyst’s chart projections.
Currently, Dogecoin is trading at $0.1877, showing a 0.5% increase in the past 24 hours. Reaching $0.8 would mark new all-time highs and a 228% increase from the current price level.
As long as the RSI remains stable and the price stays above the ascending support line, the sentiment around Dogecoin may shift from consolidation to a potential rally alongside the broader crypto market.
Featured image from Unsplash, chart from TradingView