Dogecoin is approaching a critical moment as it hovers near the $0.3563 level with the Relative Strength Index (RSI) signaling oversold conditions. This suggests that the recent sell-off may have pushed the asset into undervalued territory, increasing the possibility of a rebound.
However, it is not known whether the bulls will be able to employ this opportunity for economic recovery. As the market shows signs of fatigue, the key level to watch is $0.3563. How the price reacts in the coming sessions could set the tone for Dogecoin’s next significant move.
Understanding the current price action and overbought RSI signal
The current price action shows that Dogecoin, despite trading below the 100-day Elementary Moving Average (SMA), is showing promising signs of bullish momentum. The meme coin briefly regained strength, indicating a possible upward trajectory as it tries to overcome overhead resistance levels. Importantly, the move suggests that buyer interest is gradually increasing, which could lay the foundations for a sustained recovery if key levels are breached.
While the 100-day SMA is often a significant obstacle in bear markets, DOGE’s resilience at this point indicates that the bulls are trying to regain control. The changing price structure highlights the importance of maintaining momentum to confirm a bullish breakout, with next steps likely to be influenced by market sentiment and broader trading dynamics.
DOGE’s Relative Strength Index (RSI) is currently hovering around 30%, indicating a sturdy position in the oversold zone. This technical indicator suggests that Dogecoin may have experienced significant selling pressure, pushing its price to undervalued levels. An RSI reading of 30% or below typically gives buyers the opportunity to re-enter the market and initiate a rebound.
While this does not guarantee an immediate recovery, it highlights the potential for a trend reversal in the coming sessions, especially if other bullish signals align. Traders are keeping a close eye on whether the RSI will rise soon as it could signal strengthening momentum and a change in sentiment. Combined with price action near key support levels, the RSI position could be crucial in shaping Dogecoin’s next moves.
Rebound or continuation of the rally for Dogecoin?
DOGE’s current price action presents two key scenarios to consider: a potential rebound or continued gains. Given the oversold signal with the RSI near $0.3563, a bounce is possible if bulls step in and push the price higher, taking advantage of undervalued conditions. A successful rebound could see DOGE challenge previous resistance points such as $0.4484 and restore upside pressure.
On the other hand, if bearish pressure continues, the cryptocurrency may struggle to regain bullish control, leading to further declines towards $0.1800. The next few trading sessions will be crucial in determining the path Dogecoin will take, with support and resistance levels playing a key role in shaping its direction.
