Dogecoin Near Critical RSI Level Could Signal Major Bounce

I believe Dogecoin is currently nearing a critical 4-hour RSI level that previously signaled a significant 70% rally, which makes this a noteworthy point in its price cycle. Despite experiencing a slowdown after a strong run-up in July, Dogecoin's recent price action shows resilience, with some investors expecting this correction to be temporary. The recent dip below the $0.2 level and the retracement might be seen as a healthy correction within an overall bullish trend. The analysis suggests that historically, when the 4-hour RSI falls below 30, Dogecoin has bounced back strongly, with the last occurrence in June 2025 leading to an over 70% surge. This historical pattern indicates that the current RSI level could act as a springboard for another bullish rally, potentially pushing the price up to $0.34 if a similar percentage increase materializes. The formation of higher lows supports this optimistic outlook, implying a potential rebound. However, the current market sentiment reveals some caution, as Dogecoin has already retraced about 5.31% in August, a month known for its bearish tendencies for DOGE. Given the technical signs and historical precedents, I see this as a strategic entry point for traders who believe in a potential rebound. If the RSI level holds and momentum shifts, a rebound toward previous highs or beyond could occur. Nonetheless, it's important to consider that even with a potential 70% rally, Dogecoin would still be substantially below its 2021 peak of $0.74. Therefore, investors should weigh the possibility of a strong bounce against the current bearish signals and market volatility.