Dogecoin (DOGE) crashed to a three-year low of about $0.067 on Wednesday, down 90% from its all-time high. The meme coin now trades below $0.07 with a market cap of roughly $10.8 billion, ranking as the 10th-largest cryptocurrency. Despite the grim price action, several analysts are pointing to oversold conditions and rising on-chain activity as signs a reversal could be brewing.
Three-year low and oversold RSI
DOGE's monthly Relative Strength Index has reached its most oversold level since the 2022 market bottom. That's a technical signal analysts often interpret as seller exhaustion — meaning the selling pressure may be drying up. Analyst Ash Crypto noted the three-year low and the oversold RSI, suggesting a potential trend reversal could be on the horizon.
Rare buy signals across timeframes
Analyst Ali Martinez reported that DOGE's TD Sequential indicator flashed buy signals on the monthly, weekly, 3-day, and daily charts. He described the alignment as a rare setup, one that historically precedes a major rally. The indicator, which tracks price exhaustion and trend reversals, hasn't lined up across so many timeframes in a while.
On-chain activity climbs
Martinez also noted that weekly active DOGE addresses increased 16% over the past week, rising from about 38,000 to 44,000. That's a concrete uptick in network usage — more wallets are moving coins, which often precedes price moves. It's not a guarantee, but it's the kind of data that gets traders watching.
Still trailing Bitcoin and Ethereum
For all the bullish chatter, DOGE has performed worse than both Bitcoin and Ethereum over the monthly scale. The gap in relative strength is stark. That underperformance is part of why the current oversold reading is getting attention — if the broader market stabilizes, a beaten-down asset like DOGE could snap back harder.
Analyst MikybullCrypto has gone further, predicting a rise to a new all-time high of $1 during the next bull run. He cited macro support and the oversold RSI as catalysts. Whether that forecast materializes is anyone's guess, but the technical setup is the most interesting it's been for Dogecoin in years.
