The popular meme cryptocurrency Dogecoin (DOGE) faces increased downside pressure as technical indicators point to a potential 30-40% decline, according to a recent TradingView analysis. With the Relative Strength Index (RSI) hitting extreme oversold levels, traders are closely monitoring key support zones for signs of a bounce.
Critical RSI Levels Signal Potential Price Movement
The technical analysis reveals concerning metrics across multiple timeframes:
- 4-hour RSI has plunged below 10 – an extremely oversold reading
- 1-hour timeframe shows RSI between 25-27
- Daily RSI hovers at 32-33, approaching but not yet in oversold territory
These readings suggest significant bearish pressure, though historically such extreme oversold conditions often precede relief rallies. Recent Dogecoin price volatility has already seen the asset decline 3.6% in the past 24 hours to $0.1649.
Support Levels and Price Targets
The analysis highlights two potential scenarios:
- Bearish case: 30-40% chance of decline to $0.1580-$0.1590 support zone
- Bullish case: 60-70% probability of bounce toward $0.172-$0.175 range
Expert Analysis and Market Outlook
While the deeply oversold RSI readings typically suggest an imminent bounce, traders should note that this analysis comes amid broader market uncertainty. The technical setup suggests a relief rally is more likely, but risk management remains crucial given the volatile nature of meme cryptocurrencies.
Frequently Asked Questions
What does an RSI below 10 indicate?
An RSI reading below 10 is considered extremely oversold and often precedes a price bounce, though it can also signal strong downward momentum.
What are the key support levels for Dogecoin?
The immediate support zone lies at $0.1580-$0.1590, with resistance expected around $0.172-$0.175.
How reliable are RSI indicators for price prediction?
While RSI is a valuable technical indicator, it should be used in conjunction with other analysis tools and market factors for more accurate predictions.