Dogecoin 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 seen before the price surge of the last two years or so.
This technical observation is based on Dogecoin’s continuous uptrend along the long-term support line from 2023 and indicates current price action be in a possible early stage of accumulation before the other leg up.
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Dogecoin RSI is now showing pre-breakout signals
The RSI is an indicator that consistently aligns with Dogecoin’s strongest growth in this cycle. According to the current 2-week candlestick the setting is shared Trader Tardigrade, the RSI is currently trading steady within the same low range that preceded Dogecoin’s previous highs since 2023.
Each of the three major RSI dips, as shown in the price chart below, coincided with a price retest of the red uptrend line. This event is significant because the first two declines were followed by significant upward movements in the price of Dogecoin. Right now, the current RSI position is at its third dip and it can be concluded that the meme coin may be approaching a launch point again similar to those that led to past price spikes.
The long-term support trend line drawn from mid-2023 has acted as a reliable price base for Dogecoin recovery cycles. Price action tested this line multiple times without breaking below it, and this 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 trend line in mid-October, this drop was very short with a long fuse. Based on Dogecoin’s October price action, the most recent interaction with this trendline is just above $0.17. This latest interaction is highlighted by stability above this price level, another early sign of technical strength.
What to expect if the pattern holds
If this repeating structure between RSI and price maintains its consistency, Dogecoin could be heading for its third significant rally since the start of 2024. The most likely scenario is another rally that unfolds over several weeks, as seen in the past two rallies.
The last rally saw the price of Dogecoin only around $0.5 in December 2024. Therefore, another rally from this point will see the creation of another more above at least $0.5. The projection within the analyst’s chart, based on how the last rally played out, points to a target of around $0.8.
At the time of writing, Dogecoin is trading at $0.1877which is an increase of 0.5% in the last 24 hours. Reaching $0.8 will mark new all-time highs and a 228% increase from the current price level.
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As long as the RSI holds its current base and the price remains above the upside support, the sentiment around Dogecoin could gradually shift from consolidation to growth along with the rest of the crypto market.
Featured image from Unsplash, chart from TradingView
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