Dogecoin Nears Critical RSI Level – Same Signal That Triggered July’s 70% Rocket Ride
Dogecoin's RSI is flashing a familiar warning—or opportunity, depending on your risk tolerance. The meme coin is approaching the same oversold threshold that preceded its explosive 70% surge last month. Traders are watching the charts like hawks (or should we say, Shiba Inus?).
Will history repeat—or is this just another crypto headfake? The market's memory is shorter than a Doge tweet, but the technicals don't lie. For now, the 'buy the dip' crowd is out in force, betting that lightning strikes twice. Just remember: in crypto, 'fundamentals' are often just a funny dog picture and a prayer.
What to Know:
- Dogecoin's 4-hour RSI is expected to fall below 30, a level that historically preceded major price recoveries
- The last time this RSI level was reached in June 2025, Dogecoin rallied over 70% in the following month
- Despite recent weakness, the current price level of $0.2 represents a higher low compared to previous cycles
Technical Indicators Point to Potential Reversal
Crypto analyst KrissPax identified the developing pattern in recent market commentary. The analyst noted that Dogecoin's current price action mirrors conditions that preceded its substantial June-to-July rally. When the RSI previously dropped below 30 in June, Dogecoin was trading at $0.14.
The current setup shows dogecoin holding above $0.2, indicating what technical analysts call a "higher low." This formation often precedes "higher highs" in price trends. If the historical pattern repeats with a 70% increase from current levels, Dogecoin could reach $0.34.
Such a move would still leave the cryptocurrency more than 50% below its all-time high of $0.74, reached during the 2021 bull market. That peak remains the highest price point in Dogecoin's trading history.
Market Performance Shows Mixed Signals
August has brought renewed selling pressure to Dogecoin after July's 27.1% monthly gain. Data from CryptoRank indicates the cryptocurrency has declined 5.31% this month, giving back some of its summer profits to the market.
The August weakness aligns with historical patterns for Dogecoin. August has traditionally been one of the most challenging months for the meme coin's price performance. Historical data suggests Doge investors could face an average decline of 10% during August if seasonal trends continue.
Bears have regained control of the cryptocurrency's price action after taking out support at the $0.2 level. The broader cryptocurrency market has also experienced a slowdown following summer gains. Despite the near-term weakness, analyst sentiment suggests the current correction may be temporary.
Understanding Key Cryptocurrency Terms
The Relative Strength Index measures whether an asset is overbought or oversold on a scale of 0 to 100. RSI readings below 30 typically indicate oversold conditions, while readings above 70 suggest overbought territory. Technical analysts use these levels to identify potential reversal points in price trends.
Higher lows occur when an asset's price forms successive bottom levels that are each higher than the previous low point. This pattern often indicates underlying strength despite short-term price declines. Conversely, higher highs represent successive peak levels that exceed previous highs, suggesting upward momentum.
Closing Thoughts
Dogecoin's approach to a historically significant RSI level suggests potential for another major rally despite recent market weakness. The formation of higher lows at current price levels could set the stage for a MOVE toward $0.34 if historical patterns repeat.
