Dogecoin Turns Bullish With 1-Day RSI In Oversold Zone, Why DOGE Could Reach $0.9

Dogecoin has been trading on a downward trajectory over the past few weeks, causing its price to drop below the critical resistance level around $0.3 and is currently struggling around $0.2. This downward trend has caused the (RSI) Relatice Strength Index to tend to decline very sharply, especially the 1-day RSI slipped into the oversold zone. However, the interesting technical outlook suggests that the Dogecoin price may soon reverse upwards and reach an ambitious price target of $0.90. Dogecoin Trades Near Channel Bottom As RSI Signals Weakness A recent analysis from a TradingView analyst indicates a possible buying opportunity when the 1-day RSI slips into the oversold zone. Notably, this possible buying opportunity, despite the ongoing decline, is based on the current setup with the RSI and chart pattern, reminiscent of Dogecoin's previous price bottom. Technical analysis shows that Dogecoin has moved in a Channel Up pattern over the past year. This pattern is characterized by a constant rebound between resistance and support levels. Notably, the current price action shows Dogecoin near the lower boundary of this channel, where previous bounces triggered the rally.

However, the current trade at the lower boundary is more interesting as it confluences with the 1-day RSI, which has slipped into the oversold zone. This phenomenon reflects the conditions from August 2024, just before Dogecoin's significant price increase from September to December 2024. Moreover, the bearish wave is below the 1-day MA200 with the oversold 1-day RSI, like the August 5, 2024 low. 1-Day MA200 and Fibonacci Extension Towards $0.90 Target Based on the historical trend, the current price setup suggests that a bullish rally may be imminent in the next few weeks. The last time this asset exhibited the same (giao market conditions near the lower boundary of the Channel Up pattern with the 1-day RSI too bán), it experienced a 480% spike, eventually reaching a multi-year peak of $0.475 Notably, that peak price almost completely matches the 1,618 Fibonacci extension when forecast from the August 2024 bottom. If a similar scenario plays out, history could repeat itself with another parabolic rally in the coming months. In this case, the analyst has set a potential target of $0.90, which again stems from the Fibonacci extension of 1.618 and this time is forecast from the March low of around $0.18.

In addition to reflecting the price on the Dogecoin price chart, the sentiment around the market is an important factor. Although the technical target is $0.90 based on the 1.618 Fibonacci extension, reaching this level seems increasingly difficult in the current market conditions, especially as bearish pressure is mounting on Bitcoin.

Dogecoin's support level between $0.19 and $0.2 is under pressure, and failure to hold this level could cause a deeper retracement towards $0.16 or even $0.14. At the time of writing, Dogecoin is trading at $0.1972, down 1.47% in the last 24 hours.