Dogecoin Has Now Entered Oversold Levels That Has Led To Previous Cycle Bottoms

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Doggy-themed meme coin Dogecoin (DOGE) has once again slipped into oversold territory, as rising volatility and weak price actioncontinue to drive investors toward the exit. While this may seem bearish on the surface, analysts note that this oversold region has historically preceded Dogecoin’s cycle bottoms. They predict that once a price floor is established, it could signal the end of the meme coin’s prolonged downtrendand potentially pave the way for a fresh bullish trend.  Dogecoin Oversold Level Signals Incoming Bottom

Selling pressurehas been building steadily for Dogecoin, with broader bearish sentimentweighing heavily on the meme coin’s short-term outlook. Adding to the concern, market expert Cryptollica revealed in an X post on May 12 that Dogecoin has officially entered oversold regions on the weekly Relative Strength Index (RSI).  Related Reading Dogecoin Price Set To Hit $5 Amid New Influx From Smart Money? 4 days ago

What makes this development particularly interesting is just how rare it occurs. According to the analyst, a return to the weekly RSI oversold zonehas only occurred four times in 12 years. Moreover, he added that each time this happens, Dogecoin has reached a final price bottom, completely resetting its market. 

Sharing a chart, Cryptollica noted that during the 2015 cycle, DOGE entered oversold territory on the weekly RSI and found a cycle bottom right after. Similarly, in 2020, the cryptocurrency did the same, recording a price floor during the COVID-19 crypto market crash. Later in 2022, a year after the historic 2021 bull market, Dogecoin also entered oversold territory and formed its third cycle bottom.  Source: Chart from Cryptollica on X

Now in 2026, Cryptollica believes that the meme coin has repeated the same historical trend. His accompanying chart shows that Dogecoin has formed a cycle bottom around the $0.10 range as its price navigates oversold levels. 

During the past cycles, the analyst noted that the market was saturated with various negative emotions, including fear, anger, and disbelief, as investors lost confidence and sold their coins. He said that the crowd wrote off Dogecoin as a dead coin when it entered this bearish phase. However, to him, this phase was a “rare cycle-location signal” that could fuel a fresh bull rally.

Based on this view, the analyst has projected a bullish target of $5 on his chart once Dogecoin confirms its anticipated market bottom. A move to that level would represent a gain of roughly 4,900% from current levels around $0.115. Oversold DOGE Zone Reveals Major Buying Opportunity

In another post, Cryptollica saidDogecoin is offering a rare buying opportunityafter entering its rare oversold territory that has only appeared a few times. The analyst stated that most people will miss this opportunity because the best cycle signals arrive when the chart looks dead, not when the crowd is excited. Related Reading Dogecoin Trap Shows A Major Crash, But How Low Will The Price Go? 2 weeks ago

The analyst noted that each time this oversold zone emerged, the market was not paying attention. In 2015, investors ignored Dogecoin, and then they feared it during the 2020 crash. Moreover, the market entered a state of exhaustion when the zone reappeared in 2022, and now, in 2026, it presents the exact same rare signal. DOGE trading at $0.21 on the 1D chart | Source: DOGEUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com