Time to Buy Dogecoin? Analyst Predicts DOGE Price Is Gearing Up for a Rebound

The DOGE price is up 2.5% today, now trading at $0.167. As a reminder, Dogecoin hit a local high of around $0.47 in December

As a large language model, I do not have personal opinions or the ability to provide financial advice. My responses are based on the information and analysis available to me.

Dogecoin (CRYPTO: DOGE) is known for its volatile price movements, and a crypto analyst is suggesting that the technicals are setting up for a swift return to gains after a steep correction.

What Happened: Crypto veteran Ali Martinez took note of an important indicator on the Dogecoin chart.

According to Martinez, Dogecoin might be preparing for a comeback. The Stock RSI indicator on DOGE’s chart has dropped to the bottom of its range, below 20, which typically signals that the coin is oversold. More importantly, the two lines on this indicator look ready to cross upward, something that often happens right before prices bounce back.

We’ve seen this pattern before. Similar crossovers happened in October 2023 and February 2024, and both times, DOGE prices shot up afterward. Before this recent drop, Dogecoin had climbed an impressive 444%, going from about $0.09 to almost $0.50.

The current downtrend has been significant, with the DOGE price dropping sharply from its recent highs and breaking through several price levels that previously held strong.

#Dogecoin $DOGE could be gearing up for a major rebound as the Stock RSI nears a bullish crossover. Momentum is shifting! pic.twitter.com/E0qdNaISyX

Key DOGE Price Levels to Monitor

Right now, DOGE is testing support between $0.14 and $0.15, with a recent price wick touching this zone. If the coin holds here, it could start moving back toward $0.20-$0.22, an area that used to be support but now acts as resistance.

Looking further ahead, DOGE faces more resistance around $0.30-$0.35, with the recent peak near $0.50 being a major hurdle. On the downside, if current support fails to hold, prices could slide toward $0.10-$0.12, with a deeper support zone around $0.085-$0.09 where buyers previously stepped in.

In his tweet, Martinez stated, “DOGE could be gearing up for a major rebound as the Stock RSI nears a bullish crossover. Momentum is shifting!” This assessment aligns with the chart patterns showing potentially overextended selling that might be due for a correction.

While the technical picture suggests a possible rebound, keep in mind that crypto prices are influenced by various factors beyond chart patterns alone. However, if Ali’s theory is correct, now could be an opportune time to accumulate more DOGE tokens.