Dogecoin Price Approaches RSI Threshold That Sparked July's 70% Surge

Dogecoin, following its July surge, has experienced a decline in tandem with the broader cryptocurrency markets. However, technical analysis hints at a potential resurgence for the meme coin, suggesting it may be gearing up for another significant rally. The digital asset is nearing a crucial technical indicator level on its 4-hour Relative Strength Index (RSI) chart, a level that has previously been a precursor to substantial price increases, exceeding 70%.

Key Observations:

• Dogecoin's 4-hour RSI is anticipated to dip below 30, a threshold historically associated with notable price recoveries.
• The last instance of this RSI level being reached was in June 2025, after which Dogecoin surged by over 70% in the subsequent month.
• Despite recent market softness, the current price point of $0.2 represents a "higher low" in comparison to previous market cycles.

Technical Indicators Signal Potential Reversal

Crypto analyst KrissPax has identified this developing pattern in recent market observations. The analyst pointed out that Dogecoin's current price behavior mirrors conditions that preceded its considerable rally from June to July. In June, when the RSI previously fell below 30, Dogecoin was trading at $0.14.

The current setup reveals Dogecoin maintaining a position above $0.2, a formation that technical analysts recognize as a "higher low." This pattern frequently precedes "higher highs" in price trends. Should the historical pattern repeat itself, with a 70% increase from current levels, Dogecoin has the potential to reach $0.34.

Such a movement would still place the cryptocurrency more than 50% below its all-time high of $0.74, which was achieved during the 2021 bull market. This peak remains the highest price recorded in Dogecoin's trading history.

Market Performance: A Mix of Signals

August has brought renewed selling pressure to Dogecoin, following July's impressive 27.1% monthly gain. Data indicates that the cryptocurrency has decreased by 5.31% this month, relinquishing some of its summer gains back to the market.

This August downturn aligns with historical trends for Dogecoin. August has traditionally been a challenging month for the meme coin's price performance. Historical data suggests that DOGE investors could potentially face an average decline of 10% during August if seasonal trends persist.

Bears have regained control over the cryptocurrency's price action after breaking through support at the $0.2 level. The broader cryptocurrency market has also experienced a slowdown following summer gains. Despite this near-term weakness, analyst sentiment suggests that the current correction may be temporary.

Understanding Cryptocurrency Terms

The Relative Strength Index (RSI) measures whether an asset is overbought or oversold on a scale from 0 to 100. RSI readings below 30 typically indicate oversold conditions, while readings above 70 suggest overbought territory. Technical analysts utilize these levels to identify potential reversal points in price trends.

Higher lows occur when an asset's price forms successive bottom levels, each higher than the previous low point. This pattern often suggests underlying strength despite short-term price declines. Conversely, higher highs represent successive peak levels that exceed previous highs, indicating upward momentum.

Concluding Remarks

Dogecoin's approach to a historically significant RSI level indicates the potential for another substantial rally, even in the face of recent market weakness. The formation of higher lows at current price levels could pave the way for a move toward $0.34 if historical patterns are replicated.