- A reset in DOGE’s RSI and renewed market activity signal potential for a bullish reversal, with $0.50 being a key breakout level.
- Temporary dips to $0.32–$0.34 could gather liquidity, potentially leading to a rally aligning with historical patterns and bullish sentiment.
According to data from Santiment, DOGE’s “mean dollar invested age” has dropped by 31% over the past eight weeks, signaling increased circulation of dormant coins. In early November, Dogecoin traded within a narrow range of $0.35 to $0.48 following its explosive 208% breakout.
Previously, CNF highlighted Dogecoin’s bullish signals and potential breakout targets of $8–$10, aligning with historical growth patterns. Recent price corrections caused DOGE to dip below a rising trendline, sparking concerns about a bearish shift. However, analysts suggest this pullback could pave the way for a new rally.
Crypto pattern analyst Trader Tardigrade pointed out that DOGE’s Relative Strength Index (RSI), which recently signaled overbought conditions, has now reset, potentially indicating an upcoming bullish reversal.
RSI Reset Hints at Potential Breakout
The easing RSI mirrors a pattern seen in March 2024, when a similar reset preceded a strong uptrend. According to Tardigrade, Dogecoin could break above $0.50 in the coming days if history repeats itself.
Supporting this optimism, Santiment data shows that the drop in DOGE’s mean dollar invested age suggests renewed market activity, a trend historically linked to bullish momentum. Santiment’s tweet noted:
One of the most overlooked metrics in crypto, the Mean Dollar Invested Age, is flashing a bullish signal despite the market-wide retrace this week.
One of the most overlooked metrics in crypto, Mean Dollar Invested Age is flashing a bullish signal despite the market-wide retrace this week.
The Mean Age of investment for:
BTC is 439 days (31% younger in 60 weeks)
— Santiment (@santimentfeed) December 11, 2024
Short-Term Dip Before the Next Rally
While the broader outlook remains positive, analysts predict DOGE could temporarily dip to $0.32–$0.34 to gather liquidity before its next move higher. Historical patterns suggest such retracements, often accompanied by a test of the 50-day EMA, typically precede significant rallies.
Currently, Dogecoin (DOGE) is trading at $0.41, reflecting a 2.04% increase in the past day and a 7.85% decline over the past week. Traders are closely watching for a breakout above $0.50, which could confirm the continuation of its bullish trajectory.
