Dogecoin changed hands at $0.07097, down 1.61% on the day, as traders focused on a weekly RSI signal that has moved back into oversold territory. Analyst Trader Tardigrade said the same setup last appeared in 2022.
In his weekly chart review, he argued that Dogecoin entered a similar oversold range near the 2022 lows before staging a major rebound. Based on that earlier move, he noted that DOGE later rallied 886% and reached $0.48. Using that comparison, he floated $0.70 as a possible longer-term target if the pattern develops in a similar way.
Weekly RSI revives a familiar comparison
RSI, or Relative Strength Index, tracks the speed and direction of price moves. Readings below 30 are commonly treated as oversold, while readings above 70 indicate overbought conditions. With Dogecoin’s weekly RSI back in the oversold range, attention has turned to whether the market is replaying a setup seen during the previous cycle low.
That said, the article also makes clear that one long-term indicator does not settle the case on its own. The historical comparison has drawn attention because the prior signal was followed by a strong advance, but current market conditions still need added confirmation before traders can treat the analogy as actionable.
Short-term indicators still point to pressure
Near-term technical readings remain weak. DOGE continues to trade below the middle Bollinger band at $0.08106, a sign that selling pressure is still present. The lower Bollinger band at $0.06950 is now the main support level being watched.
MACD readings also reflect limited strength. The MACD line stands at -0.00534, while the signal line is at -0.00478. The histogram, printed at -0.00056, suggests buying momentum has not recovered in a meaningful way yet.
$0.06950 support becomes the key level to watch
The next few weeks could be important for Dogecoin. Traders will be watching to see whether the renewed RSI signal leads to a rebound similar to the one that followed in 2022. If buyers hold critical support and momentum readings begin to improve, the market could start rebuilding confidence.
If selling continues and $0.06950 fails as support, price may face another round of downside pressure. For now, the comparison with 2022 is driving interest, but the article notes that extra technical confirmation is still needed before a $0.70 target can be treated as credible.