Dogecoin Price Prediction: RSI Points to $0.75–$1.00 Range

Derivatives and On-Chain Data Support Dogecoin Price

Dogecoin posted strong gains with technical, on-chain and derivatives data highlighting conditions that could see the asset breakout.

At the time of writing, the cryptocurrency was trading at $0.2380, after experiencing a 10.09% rise in the last 24 hours and a 6.26% increase in the last week, with the intraday performance recording a drop of 0.42% over the last hour.

RSI Trends Suggest Dogecoin Price Could Enter Expansion Phase

The weekly chart indicates the Relative Strength Index (RSI) is in a rounded bottom and is moving upward out of the mid-levels. In the past, Dogecoin price has gained when the RSI moved into the 80-90 area, which is currently being approached.

Dogecoin weekly chart : Source : X

Projections show that possible progression is toward the $0.75-1.00 range in the next expansion phase. This view is in line with other previous cycles in which confirmed RSI momentum contributed to large rallies.

Dogecoin monthly chart : Source : X

Additionally, Trader Tardigrade monthly chart shows the repetitive pattern of long-term consolidation followed by breakout rallies. Each previous cycle was characterized by a general buildup of accumulation, which was followed by sharp upthrusts, usually accompanied by an increase in trading activity.

Derivatives Market Activity Strengthens Outlook

The futures data indicate that the trading volume increased sharply by 67.45% to reach $8.82 billion in the previous session. At the same time, open interest rose by 10.10% to $3.55 billion, which is a sign of new capital entering.

The Options activity recorded a different scenario, where the trading volume decreased by 72.80% to $230.03 million. Options open interest also declined significantly by 96.84% to $142.62K, indicating less speculative interest.

The combination of increasing futures volume and falling options volume suggests the increased directionality of futures markets as opposed to limited speculation in options.

Network and On-Chain Data Indicate Steady Growth

Dogecoin's hash rate has been growing steadily and has been a good indicator of the sustained involvement of miners in the network. This has increased further, even when the market was oscillating with volatile prices.

DOGE hashrate : Source : Alphractal

The cumulative value days destroyed (CVDD) model positions the present market in valuation ranges that have acted as boundaries to the cycle in the past. 

DOGE Cumulative Value Days Destroyed (CVDD) : Source : Alphractal

Lower band has cushioned against the downturns, whereas the upper end has been in line with overheated periods. The current price range of DOGE is within these bands, and it indicates a mid-cycle period.

Alpha price model comparison indicates that Dogecoin continues to trade below the model line. During past bullish periods, the price of the asset reached or surpassed this value, which means that it could grow in case of a repetition of patterns.

Meanwhile, the network stress index that calculates transaction pressure in relation to price also gives context. In the previous bull runs, stress levels were high with sharp rallies, but in the recent bull run, the stress levels remain low, which suggests a healthier transaction activity at higher prices than in the previous downtrends.

On-chain data show consistent active addresses, which means stable user participation. Sentiment is also low compared to previous peak periods and is in line with accumulation and not distribution.