Dogecoin's Latest 2-week chart analysis shows that cryptocurrencies may be preparing A new explosive rally. According to Trader Tardigrade, a trader and market analyst, Dogecoin’s Relative Strength Index (RSI) is stable at the same level as before the price rally of the past two years.
This technical observation is based on Dogecoin’s steady upward trend along the long-term support line since 2023 and indicates the current price trend. May be in the early stages of accumulation before the other foot is lifted.
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Dogecoin RSI shows pre-breakout signal
The RSI is an indicator that has consistently coincided with Dogecoin's strongest rally this cycle. According to the current 2-week candlestick Setup shared with Dear Trader Tardigrade, the RSI is currently trading steadily within the same low range prior to Dogecoin's previous rally from 2023 onwards.
As shown in the price chart below, each of the three major declines in the RSI coincides with a price retest of the red uptrend line. This event was notable because the initial two declines were followed by a significant increase in Dogecoin prices. Currently, the current RSI position is at the third bottom, allowing us to speculate that the meme coin may once again be approaching a similar opening point that caused past price spikes.
The long-term support trend line drawn from mid-2023 served as a reliable price base for Dogecoin’s recovery cycle. Price action has tested this line multiple times without breaking below it, which has led to the formation of higher highs and higher lows.
Dogecoin 2W candlestick price chart. Source: Trader Tardigrade On X
Dogecoin broke below the trend line in mid-October, but this break was very short-lived and had a long wick. Based on Dogecoin’s price movement in October, the recent interaction with this trendline is just above $0.17. This latest interaction is highlighted by stability above this price level, which is another early sign of technical strength.
What to expect if the pattern holds
Given this cyclical structure between RSI and price; maintain consistency, Dogecoin may be about to embark on its third notable bull market since early 2024. The most likely scenario is for the rally to continue for several weeks, as seen in the past two rallies.
In the previous rally, Dogecoin price was just around $0.5 in December 2024. So the next rally from this point will see another rally. High price of at least $0.5. Analyst forecasts in the chart are based on the development of the previous bull market, with a target price around $0.8.
At the time of writing, Dogecoin is trading at $0.1877up 0.5% in the past 24 hours. Reaching $0.8 would mark a new all-time high and represent a 228% rise from current price levels.
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As long as the RSI maintains its current norms and the price remains above the upside support, sentiment surrounding Dogecoin could gradually move from consolidation to upside. Similar to other cryptocurrency markets.
Featured image from Unsplash, chart from TradingView
