Dogecoin appears poised for a significant price move, according to recent technical analysis from prominent cryptocurrency analyst Trader Tardigrade. The expert identified a recurring pattern on the asset’s two-week chart that historically preceded major upward trends.
The analysis centers on the Relative Strength Index (RSI), a momentum oscillator that tracks overbought and oversold conditions. According to Trader Tardigrade’s January 16 post, Dogecoin’s RSI has pulled back to levels that previously signaled the start of substantial rallies.
“Dogecoin RSI has retracted for the coming massive surge,” the analyst noted, drawing parallels to similar setups observed before the cryptocurrency’s explosive movements in 2020 and 2021.
Historical Pattern Emerges on Extended Timeframe
The two-week chart reveals a compression phase taking shape. This period typically follows extended rallies and allows momentum indicators to cool before the next major move. The current RSI positioning mirrors accumulation zones from previous cycles that led to parabolic price increases.
Source: X
Dogecoin often experiences prolonged consolidation before breaking into aggressive uptrends. The digital asset spent months building support levels during past cycles before vertical rallies materialized. Similar characteristics appear in the current price action.
Higher lows and decreasing volatility mark the present range. These technical features typically indicate accumulation. The chart structure shows buyers establishing positions while bearish pressure diminishes.
Momentum indicators are beginning to curve upward from oversold territory. This shift suggests a potential transition from seller dominance to buyer control. The combination of these factors aligns with conditions observed before previous Dogecoin breakouts.
Current Market Position and Price Action
Dogecoin trades at $0.1378 at press time. The price reflects mixed performance across different timeframes. The cryptocurrency declined 4.68% over the past day and dropped 1.52% during the previous week. However, the monthly chart shows a 6.06% gain.
DOGE’s price action over the past 24 hours (Source: CoinCodex)
The recent pullback may represent a healthy correction within a larger bullish structure. Technical analysts often view such retracements as opportunities for late entrants or position accumulation. The price action suggests consolidation rather than trend reversal.
Source: https://coinpaper.com/13813/dogecoin-price-poised-for-massive-surge-as-rsi-indicator-resets-analyst-says
