Dogecoin is hovering around $0.3563 on the Relative Strength Index (RSI), approaching a key juncture that signals an oversold situation. This suggests that the recent decline may have pushed the asset into undervalued territory, increasing the likelihood of a rebound.
However, it remains unclear whether bulls can seize this opportunity to drive economic recovery. With the market showing signs of fatigue, $0.3563 has emerged as a pivotal level to watch. How the price reacts in the coming sessions could set the tone for Dogecoin’s next significant move.
Understand current price movements and overbought RSI signals
Current price action reveals that Dogecoin is showing promising signs of bullish momentum despite trading below its 100-day simple moving average (SMA). The memecoin briefly regained momentum, signaling a possible upward trajectory to challenge the overhead resistance level. Importantly, this move suggests that buyer interest is gradually increasing, which could lay the foundation for a sustained recovery if a key level is broken.
The 100-day SMA is often a major hurdle in bear markets, but DOGE's resilience during this phase shows that the bulls are working to regain control. The evolving 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 at 30%, indicating a firm position within the oversold zone. This technical indicator suggests that Dogecoin may have come under heavy selling pressure, pushing its price to undervalued levels. When the RSI value drops below 30%, there is usually an opportunity for buyers to re-enter the market and begin a rebound.
While this does not guarantee an immediate recovery, it does highlight the possibility of a reversal in the coming sessions, especially if other bullish signals align. Traders are keeping an eye on whether the RSI will rise soon. This is because this could indicate strength in momentum or a change in sentiment. Combined with price movement around major support levels, RSI positioning could be important in shaping Dogecoin’s next move.
Will Dogecoin rebound or continue to rise?
DOGE's current price trend indicates two important scenarios to consider. It's either a potential rebound or a continuation of the rally. Given the oversold signal from the RSI near $0.3563, a rebound is possible if the bulls take advantage of the undervalued situation and push the price higher. If the recovery is successful, DOGE could challenge previous resistance points such as $0.4484 and restore upward pressure.
On the other hand, if the bearish pressure persists, the cryptocurrency could struggle to regain bullish control and fall further towards $0.1800. The next few trading sessions will be crucial in determining what path Dogecoin takes, and support and resistance levels will play a key role in shaping its direction.
