Dogecoin (DOGE) is currently facing significant downward pressure, with long-term technical indicators flashing a rare and concerning signal. The asset’s weekly Relative Strength Index (RSI) has dropped into a territory seen only a few times in its history, suggesting that the current bearish trend is deeply rooted rather than a temporary fluctuation.
While short-term indicators often bounce back quickly, the weekly RSI reflects deeper market shifts. Currently hovering near the low 30s, this reading indicates that sellers have dominated the market for an extended period.
Historically, when DOGE hits these oversold levels, it doesn't necessarily mean an immediate recovery is coming. Instead, it often marks the beginning of a "basing" period where the price drifts sideways or continues to leak lower before eventually stabilizing.
The few times Dogecoin’s weekly RSI has reached these lows, it coincided with major global or crypto-specific crises:
In every instance, while the RSI highlighted extreme stress, it did not provide a specific timeline for a rebound. In most cases, it took months or even years for a significant price recovery to materialize.
The current market environment differs from previous cycles due to the presence of sophisticated financial products like futures and ETFs. Recent data suggests a concerning trend:
Dogecoin’s drop to historical RSI lows at its current price of approximately $0.129 is more of a warning light than a "buy the dip" signal. For a true recovery to begin, the market needs to see price stabilization, increased trading volume, and a shift in capital from speculative betting to long-term holding. Until then, the outlook remains cautious.
December 2025, Cryptoniteuae