Dogecoins the latest two-week chart analysis suggests the cryptocurrency could prepare for a new explosive rally. According to trader and market analyst Trader Tardigrade, the Relative Strength Index (RSI) for Dogecoin has settled at levels similar to those before the price increases over the past two years.
This technical observation is based on Dogecoin’s steady uptrend along a long-standing support line since 2023 and points to current price action. are in a possible early accumulation stage before another leg goes up.
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Dogecoin RSI is now showing pre-breakout signals
The RSI is an indicator that has been consistently tuned to Dogecoin’s strongest rallies in this cycle. According to the current 2-week candlestick arrangement divided by Trader Tardigrade, the RSI is currently trading steady within the same low range that has preceded Dogecoin’s previous upward gains since 2023.
Each of the three major RSI drops, as shown in the price chart below, coincided with price retests of the red rising trendline. This event is notable because the first two dips were followed by significant upward moves in the Dogecoin price. At the moment, the current RSI position is on its third dip, and from this it can be inferred that the meme coin may once again be approaching a launch point similar to the one that has led to price increases in the past.
The long-term support trendline, drawn from mid-2023, has served as a reliable price basis for Dogecoin’s recovery cycles. Price action has tested this line multiple times without breaking below it, and this has led to the creation of higher highs and higher lows.
Dogecoin 2W candlestick price chart. Source: Trader Tardigrade on X
Although Dogecoin broke below the trendline in mid-October, this slump was very short and long-lived. Based on Dogecoin’s October price action, the most recent interaction with this trendline is just above $0.17. This last interaction was highlighted with stability above this price level, and this is another early sign of technical strength.
What to expect if the pattern holds
If this recurring structure between RSI and price maintains its consistency, Dogecoin could be about to embark on its third notable bullish run since early 2024. The most possible scenario is another rally that plays out over several weeks, as seen in the past two rallies.
The last rally saw the Dogecoin price only reach around $0.5 in December 2024. Therefore, a new rally from this point will see the creation of a new rally. higher high above $0.5 at least. The projection in the analyst chart, which is based on how the latest rally plays out, points to a price target of around $0.8.
At the time of writing it is Dogecoin is trading at $0.1877an increase of 0.5% in the last 24 hours. Reaching $0.8 will translate into new all-time highs and an increase of 228% from the current price level.
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As long as the RSI holds its current base and the price remains above rising support, sentiment around Dogecoin could gradually shift from consolidation to rally. alongside the rest of the crypto market.
Featured image from Unsplash, chart from TradingView