The biggest meme coin is deep in the red on a monthly scale, performing much worse than leading cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), over that period. Moreover, it collapsed to its lowest level since the autumn of 2023 before slightly regaining some of the losses.

Nonetheless, optimism among analysts is running high, with many expecting a strong rebound in the short term.

Major Bullish Signal

As of press time, DOGE trades below $0.07, boasting a market capitalization of around $10.8 billion. This positions it as the 10th-biggest cryptocurrency, yet its decline over the past few years is more than evident.

X user Ash Crypto noted that the meme coin recently plunged to a three-year low of roughly $0.067 and is down 90% from its all-time high. The analyst also told their more than two million followers that DOGE’s monthly Relative Strength Index (RSI) has reached its most oversold level since the 2022 market bottom.

Such a development is usually interpreted as a bullish signal, as it points to seller exhaustion, meaning the downtrend is potentially losing strength. Conversely, overbought territory is considered a warning for a possible impending correction. MikybullCrypto also touched upon the matter, envisioning a rise to a new historical peak during the next bull run:

“You don’t remain bearish at this current macro support level. The most oversold level in RSI. $1 is coming next during its bullish reversal.”

Is DOGE Waking up?

Another positive comment came from Ali Martinez. The renowned analyst revealed that weekly active DOGE addresses have jumped 16%: from around 38,000 toward the end of July to roughly 44,000 as of now, indicating a sharp increase in on-chain activity.

This can be interpreted as a bullish signal, as it shows that more users are returning to the network, which often strengthens momentum and can support a potential upward move.

Not long ago, Martinez chipped in again, revealing that DOGE’s TD Sequential indicator has flashed buy signals on the monthly, weekly, 3-day, and daily charts. He described this as a rare setup that could be a precursor to a major price rally.

Source: CryptoPotato