Pundit Predicts DOGE Price Has a 30-40% Chance of Dropping to $0.165 as RSI Approaches Oversold Levels

A recent Dogecoin analysis on TradingView highlighted a potential scenario where DOGE could fall below the $0.165 level before recovering. The analyst, while examining the 4-hour candlestick chart, pointed out the extremely oversold RSI as the basis for this outlook. Although a recovery seems to be a more likely outcome, there is still a 30 to 40% chance of a short-term decline to a deeper support zone. The RSI of Dogecoin has fallen below 10 on the 4-hour chart, which may prolong the downtrend. The Relative Strength Index (RSI) is a technical analysis indicator used to measure the momentum of an asset. When above 70, the asset is considered overbought, meaning it may be due for a price correction or pullback. On the other hand, readings below 30 are considered oversold, meaning the asset may be undervalued and could soon bounce back. In the case of Dogecoin, this meme coin has faced strong selling pressure since the beginning of March. This selling pressure has caused it to lose most of its price gains by the end of 2024 and break below significant support. This, in turn, has caused the RSI to drop into oversold territory across multiple time frames.

According to the technical overview, the Relative Strength Index on the 1-hour timeframe is between 25 and 27, indicating a strong oversold condition. On the 4-hour chart, the RSI has fallen further, dropping below 10, which typically indicates that an asset is about to experience a corrective recovery. The daily RSI is currently fluctuating around the 32 to 33 level, still above the oversold zone but trending downwards. These indicators suggest that although the bearish pressure is still present, the recovery setup from the oversold level increasingly supports a rebound as buyers look to re-enter near the support level. Analysts see the recovery towards $0.172–$0.175 as a more likely outcome. According to the analyst, the RSI breaking below the oversold level indicates a decline towards the support zone of $0.1580 and $0.1590. Although there is a possibility of a decline towards the support zone of $0.1580 to $0.1590, the analyst notes that there is a higher likelihood of around 60 to 70% for a short term recovery after reaching this support zone, potentially targeting the range of $0.172 to $0.175. The forecast depends on the potential reaction of Dogecoin to such a deeply oversold RSI level. The analyst emphasizes that this is an assumption and not financial advice, but the technical context supports the possibility of a recovery if the support level is maintained. At the time of writing, Dogecoin is trading at $0.1649, down 3.6% in the last 24 hours. With both bearish and bullish scenarios outlined, the short term price action of Dogecoin currently depends on how the market reacts at the current level of $0.165. A move towards $0.172 or higher could happen quickly if buyers step in now. However, if selling continues, Dogecoin may continue to fall throughout the week before attempting to recover.