Dogecoin Price Could Rebound Soon, Analysts Predict
Dogecoin has been struggling in a downtrend over the past few weeks. Its price has fallen below key resistance levels, first breaking under $0.30 and now hovering around $0.20. This decline has also pushed the Relative Strength Index (RSI) into oversold territory, signaling strong bearish momentum.
A Possible Price Rebound?
Despite the current slump, some analysts believe Dogecoin could be on the verge of a big price reversal. A TradingView analyst points out that Dogecoin has been trading within an upward channel for the past year, bouncing between support and resistance levels. Right now, Dogecoin is near the lower boundary of this channel, where previous rebounds have started.
What makes this even more interesting is that the 1-day RSI has dipped into oversold territory, just like it did in August 2024 before Dogecoin surged between September and December 2024. This suggests that history could repeat itself with another price rally.
Could Dogecoin Reach $0.90?
Looking at past trends, the last time Dogecoin was in this position, it jumped by 480%, reaching $0.475. That price peak lined up with the 1.618 Fibonacci extension level, which traders often use to predict price targets. If the same pattern happens again, Dogecoin could climb toward $0.90 in the coming months.
However, market conditions remain uncertain. Bitcoin’s bearish pressure could make it harder for Dogecoin to rally. If Dogecoin fails to hold support between $0.19 and $0.20, its price could drop further to $0.16 or even $0.14.
As of now, Dogecoin is trading at $0.1972, down 1.47% in the past 24 hours. Traders will be watching closely to see if a breakout happens soon.
