Dogecoin has seen a significant breakout of 208% in early November but has since consolidated in a narrow range between $0.35 and $0.48. Recent trends indicate a potential bearish shift due to a breakout below an ascending trendline. Despite a 16% decline this week, analyst Trader Tardigrade notes that Dogecoin's RSI has reset from an overbought condition, suggesting a possible uptrend. Historically, similar RSI behavior in March 2024 led to a strong upward movement. Furthermore, data from Santiment indicates a bullish signal with the mean dollar invested age of DOGE decreasing by 31%, suggesting dormant coins are re-entering circulation. Although a bullish long-term outlook persists, a short-term drop collecting liquidity between $0.32 and $0.34 is anticipated before a potential rally above $0.50. This aligns with past patterns where a retreat often precedes a continued bullish trend.

Source 🔗