Dogecoin RSI signals bullish rebound toward $1

Dogecoin (CRYPTO:DOGE) has shown mixed price action in March, briefly reclaiming $0.20 before retreating to $0.17 amid broader market volatility.

Despite the pullback, technical indicators suggest potential upside, with analyst Trader Tardigrade highlighting a bullish confluence on weekly charts.

The meme coin’s Relative Strength Index (RSI) on the weekly timeframe has mirrored patterns that preceded past rallies.

“$Doge: $1 on the way,” trader Tardigrade noted on X.

The current setup aligns with historical precedents, including a similar RSI decline and candlestick patterns observed in October 2023 and September 2024, which preceded surges to $0.22 and $0.48, respectively.

A key technical signal is the combination of a “Dogi” and inverted hammer pattern on the weekly chart, paired with a declining RSI.

This alignment has occurred only twice since September 2023, both times preceding significant rallies.

Analysts argue that a repeat could propel DOGE toward the $1 mark, a level it has yet to reach.

Short-term momentum also shows signs of improvement.

Trader Tardigrade identified bullish divergence on the hourly chart, where RSI strength contrasts with price weakness.

“Dogecoin is finding its bottom whilst RSI signals Bullish Divergence on hourly chart,” he stated, suggesting a potential relief bounce from $0.17.

A failure to hold $0.17 could invalidate bullish expectations, particularly if broader crypto markets lack momentum.

DOGE’s $25 billion market cap and reliance on speculative sentiment further underscore its volatility.

While technical signals offer optimism, analysts caution against overreliance on patterns alone.

The meme coin’s trajectory hinges on broader market trends and sustained buying pressure.

If historical precedents hold, DOGE could stage a recovery, but macroeconomic factors and regulatory developments may influence its path.

At the time of reporting, the Dogecoin (DOGE) price was $0.1642.