Dogecoin [DOGE] RSI Surges to 2020 Levels, Mirroring a Pattern That Ignited a Major Rally

Dogecoin [DOGE]'s bi-monthly RSI has surged to levels not seen since 2020, mirroring a pattern that ignited a major rally years ago.

Dogecoin [DOGE] continues to attract attention with its price movements, and now, on-chain metrics are also signaling a potential breakout. At press time, DOGE was priced at $0.2112 following a 7.17% hike in the last 24 hours.

As highlighted in a recent analysis by X post (formerly Twitter), Dogecoin’s bi-monthly RSI reached 68.15, signaling growing buying pressure. Interestingly, back in 2020, a similar RSI level marked the beginning of a massive price surge.

However, it is also important to note that a high RSI can indicate a possible overbought condition. Hence, this finding raises questions about whether this momentum will hold or if a short-term consolidation is more likely.

A closer look at the technical indicators reveals that recent candlestick patterns underlined steady gains, with DOGE forming higher highs – A sign of growing bullish sentiment. And yet, at press time, the price faced a key resistance level at $0.229.

Breaking through this level is essential for Dogecoin to confirm a bullish breakout, whereas failure could lead to a temporary pullback. This can potentially delay the memecoin’s next rally.

Source: TradingView

Net network growth increases, signaling rising interest in Dogecoin

On the other hand, on-chain metrics also flashed some bullish signs. Net network growth increased by 0.26%, indicating rising engagement and interest on the Dogecoin network. Such growth often aligns with sustained positive sentiment, suggesting that more users are entering the Dogecoin space as its price climbs.

Furthermore, 0.74% of addresses were “In the Money” at press time, signaling profitability for holders and supporting stable holding patterns.

Also, large transactions jumped by 8.13%, indicating heightened activity from bigger market players. This large-scale interest can be interpreted as a positive sign, one that is well in line with the memecoin’s recent price hike.

Source: IntoTheBlock

Finally, the daily active addresses also surged, recently surpassing 32,000, according to Santiment analytics. This uptick in user engagement coincided with the broader bullish sentiment, showing that more participants are actively transacting.