Key Insights
- Dogecoin consolidated near $0.22 after a volatile week, with daily volume reaching $3 billion.
- Weekly RSI forms rounded bottom, historically signaling rallies when momentum builds from cooling phases.
- Analysts note DOGE mirrors past structure before a +380% surge, fueling speculation about another rally.
Dogecoin (DOGE) is trading at $0.23, with a 24-hour gain of 4%. Over the last week, the token has declined by 1%, showing mixed movement after a volatile trading period. Daily trading volume reached $3 billion, reflecting strong market activity despite the recent pullback.
DOGE continues to consolidate after failing to break above higher resistance levels. Price action shows the token stabilizing near the $0.22 zone, which has become a short-term area of interest for traders watching for the next decisive move.
A chart shared by Trader Tardigrade suggests the weekly Relative Strength Index (RSI) may be pointing toward a possible reversal. The RSI has formed a rounded bottom, marked by colored points on a dotted curve. This shape indicates momentum has been gradually improving after a cooling phase.
In the past, each time the RSI rebounded from similar levels, Dogecoin experienced rallies. Trader Tardigrade commented that “#Dogecoin weekly RSI looks promising,” while pointing to an arrow projection showing potential price expansion beyond current levels.
Familiar Price Structure Resurfaces
Analyst Kamran Asghar compared Dogecoin’s current structure to a period before a +380% surge in late 2024. The chart shows DOGE in a tight consolidation range, marked by a circle around the $0.21–$0.22 level. The similarity with the earlier accumulation phase raises questions about whether another rally could develop.
The projection box on the right side of the chart highlights a potential upward expansion, though the gain is left uncertain. Kamran Asghar stated, “The chart is showing a familiar pattern. Are we headed for another major rally?” suggesting that traders may be preparing for a breakout scenario.
Source: Kamran Asghar/XBalancing Optimism with Market Conditions
While technical indicators such as the RSI and historical patterns point to potential strength, DOGE remains below key resistance zones. The token has tested higher levels in recent weeks but has yet to confirm a breakout.
Market observers remain cautious, noting that confirmation of momentum will depend on price holding above support levels and RSI continuation. For now, Dogecoin is trading in a zone that resembles past pre-rally phases, leaving traders watching closely for signs of whether the setup will repeat.
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Source: https://coincu.com/analysis/doge-drops-7-weekly/
