The Dogecoin Relative Strength Index (RSI) is said to have reached historic oversold levels. This has raised the possibility that the top meme coin could repeat its parabolic rally in 2021 bull cycle.
Dogecoin is seeing a parabolic rally as RSI hits oversold levels
This was pointed out by Crypto analyst Cryptollica Dogecoin price could see another parabolic rally once the RSI reaches oversold levels. In Post Xthe analyst noted that this was the fourth time in 12 years that the DOGE RSI had been so oversold and that each time it happened it was life-changing.
Cryptollica further noted that the decline Dogecoin RSI up to this level there was always an “epic buying opportunity” and those who topped up made crazy profits. Therefore, the analyst noted that this is another huge opportunity. Meanwhile, Cryptollica alluded to previous times when the RSI dropped to such low levels, including the bottom of the last cycle when DOGE fell to $0.50.
Dogecoin has reached a modern level highest level ever (ATH) reached $0.74 after a low of $0.05, registering huge gains. Cryptollica noted that such setups do not happen often and urged market participants not to miss this setup. The attached chart suggested that DOGE could rise to the psychological level of $1 this time, marking a modern ATH for the most popular meme coin.
DOGE reflects the pattern of accumulation of the past
In another Post XCryptollica highlighted a similar DOGE/BTC pattern between accumulations in 2014-2017 and 2021-2026. The analyst stated that the structure was identical and assured that bleed against Bitcoin is not “death”, but a necessary compression of energy before rotation. Cryptollica added that once the green line is broken, risk appetite changes immediately.
Meanwhile, Cryptollica stated that the fractal is charging and Dogecoin is to be the heartbeat altcoin cycle. The analyst claimed that this is the final stage of a multi-year compression towards Bitcoin. Historically, this leads to a specific reduction in volatility that precedes a mass rotation of capital from BTC to altcoins.
Cryptocurrency analyst Bitcoinsensus has been raised the possibility of Dogecoin rising to $0.70, which may be close. This occurred when the analyst noticed that DOGE had been moving in a nice manner throughout this bull cycle. This is said to be seen in mini-cycles where the main meme coin hits the dotted line and then slowly returns. Based on this pattern, Bitcoinensus noted that DOGE could target the $0.70 range soon if robust momentum returns in the cryptocurrency market.
At the time of writing, Dogecoin is trading around $0.137, down over the last 24 hours, according to data from CoinMarketCap.
Featured image from Getty Images, chart from Tradingview.com
