Dogecoin, thought to be a dead coin, hit 'rock bottom'?...Oversold Signal Reappears

▲ Dogecoin (DOGE)/ChatGPT generated image

Dogecoin (DOGE) has re-entered the oversold territory based on the weekly Relative Strength Index, deepening its bearish trend. However, an analysis suggests that a rare signal, which created cycle bottoms three times in the past, has reappeared.

According to NewsBTC on May 15 (local time), Dogecoin entered the weekly Relative Strength Index oversold zone amidst price sluggishness and increased volatility. Crypto analyst Cryptollica announced in an X (formerly Twitter) post on May 12 that Dogecoin has officially entered the weekly RSI oversold territory.

Cryptollica explained that Dogecoin's entry into the weekly Relative Strength Index oversold territory is a rare signal that has only appeared four times in 12 years. He analyzed that each time this signal appeared, Dogecoin formed a final price bottom and reset its market structure. In the 2015 cycle, a bottom was formed immediately after entering oversold territory, and the same pattern appeared during the 2020 COVID-19 cryptocurrency market crash. In 2022, after the 2021 bull run, Dogecoin entered the oversold territory and formed its third cycle bottom.

Cryptollica observed that Dogecoin is currently repeating the same historical pattern in 2026. The chart he shared suggested that Dogecoin formed a cycle bottom around $0.10 after passing through the oversold territory. He explained that in the past, fear, anger, and distrust dominated the market, and investors treated Dogecoin as a dead coin, but this period became the starting point for a new bullish rally.

An upside target was also presented. Cryptollica predicted that Dogecoin could rise to $5 once it confirms the expected market bottom. NewsBTC reported that a rise from the current $0.115 level to $5 would represent an approximately 4,900% increase.

In a separate post, Cryptollica evaluated this oversold period as a rare buying opportunity. He stated that the best cycle signals do not come when the public is enthusiastic, but when the charts look dead. NewsBTC reported that investors shunned Dogecoin in 2015, fear was high in 2020, and the market was exhausted in 2022. Cryptollica analyzed that the same rare signal appeared in 2026.

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