The Dogecoin index ($DOGE ) has officially fallen into the oversold territory, but so far, the market shows no signs of an upward trend. The daily Relative Strength Index has dropped below the 30 level, recording 29.36 as of June 21, 2025. This typically indicates a technical 'oversold' condition, which is a level that attracts assets from investors looking to buy at lower prices.
But unlike early March, when a similar performance of the Relative Strength Index led to a strong 18% rise, this time, there is no sign of a Dogecoin rally.
The price is currently $0.1549, slightly below the day's low, and the overall structure shows no signs of a trend reversal yet. The last time the Relative Strength Index fell to this level, the price of Dogecoin was at its lowest near $0.12 before recovering.
So what’s the difference? After this move, there was supportive divergence in the Relative Strength Index and an increase in trading volume. Currently, neither exists. Trading volume is stable, and the price is in a continuous decline.
Another concerning indicator is the absence of any significant breakout from the support level. Last March, the rise of the Relative Strength Index above the support level coincided with consolidation candles on the chart and a bullish crossover of the Relative Strength Index. This time, the Relative Strength Index signal line (red) is still dominant, and the downward trend does not seem to have stabilized yet.
There is also a broader picture to consider. Dogecoin has been experiencing a slow decline since early June, having dropped over 40% from its local highs above $0.26. Short-term rallies did not hold, and all support levels we tested eventually broke. Unless that changes, this level of overselling may just be another signal ignored by a market that still lacks conviction.
In short, it is noted that the stock $DOGE
Technically in an oversold condition, but the market is not responding in the way that bulls hoped.
We will need to wait for stronger reversal signals, such as volume spikes, pattern breakouts, or divergent plays, before we can say for certain that this is more of a warning flag than a catalyst for a rebound.