Dogecoin (DOGE) Bulls Disappear

Cover image via U.Today

Dogecoin (DOGE) has officially entered oversold territory, yet the market has not exhibited any immediate bullish reaction. As of June 21, 2025, the daily Relative Strength Index (RSI) has dipped below the 30 threshold, registering at 29.36. This typically signifies a technically oversold state, a point at which assets often become attractive to investors seeking to capitalize on price dips.

However, in contrast to early March, when a comparable RSI reading prompted a robust 18% rally, DOGE bulls are currently absent from the scene.

The current price hovers around $0.1549, slightly below the day's low, and the overall price structure offers no indications of an imminent reversal. The previous instance of the RSI reaching such a low coincided with DOGE's price bottoming out near $0.12 before staging a recovery.

What accounts for this difference? Following the previous move, there was a supportive RSI divergence and an increase in trading volume. Currently, neither of these factors is present. Volume remains stagnant, and the price continues its descent.

Adding to the concern is the absence of any noteworthy support breakout. In March, the RSI's rebound from the floor aligned with consolidating candlesticks on the chart and a bullish RSI crossover. This time, the RSI signal line (red) remains dominant, and its downward trajectory shows no signs of abating.

Furthermore, the broader context must be considered. DOGE has been on a gradual downward trend since early June, experiencing a decline of over 40% from its local peaks above $0.26. Short-term rallies have proven unsustainable, and each support level tested has ultimately been breached. Unless this dynamic shifts, the current oversold reading may simply be another signal disregarded by a market still lacking confidence.

In summary, while DOGE is technically oversold, the market's response is not aligning with bullish expectations.

We must await more compelling reversal signals, such as surges in volume, pattern breakouts, or divergence patterns, before definitively determining whether this oversold condition represents a cautionary flag rather than a precursor to a bounce. Read original article on U.Today