The last time the 4-hour RSI broke through the oversold area, DOGE showed parabolic movement the following month—Dogecoin price predictions are now expected to repeat this.
The same technical setup that initiated the first phase of the Dogecoin bull market is now replaying, but this time the price outlook for Dogecoin may be more optimistic.
Although the uncertainty surrounding tariffs has dampened enthusiasm for high-risk investments like meme coins, the 7% rebound since the beginning of this month may signal a new upward trend for DOGE.
This move comes as the macro environment begins to turn favorable for risk assets. Speculators currently expect the Federal Reserve to cut rates up to three times by the end of the year, starting as early as September.
Lower borrowing costs may stimulate new inflows into risk assets like cryptocurrencies, reviving sentiment for altcoin season.
Will DOGE see a second round of larger-scale bull market?
Famous X analyst Kriss Pax stated that the reversal in early August may signal the second phase of the Dogecoin bull market, with the current technical setup echoing the first phase.
In June, the 4-hour RSI fell below 30 into the oversold area, then rose by 70%, eventually pushing Dogecoin to its peak at the end of July. Now, this pattern seems to be replaying.
But this time, the increase could be larger. 'Last time the price was $0.14, now it's around $0.20. The higher the low, the higher the high,' Pax pointed out, indicating greater potential for a rise.
After profit-taking led to a decrease in whale holdings, savvy investors are buying Dogecoin, which appears to signal a second wave of increases for Dogecoin. In just the past 24 hours, whales have accumulated over 1 billion Dogecoins.
The new confidence from major shareholders may prove further price increases in the future, using declines as opportunities for repositioning.
Dogecoin Price Analysis: Is the Biggest Surge Coming?
Dogecoin may experience a sustained bull market, as breaking out of the descending wedge will open the door for a return to the peak in late July.
Since Pax began observing, the 4-hour RSI has rebounded from the oversold area to nearly neutral at 47, paving the way for buyers to return to the market and break through the wedge.
Despite the momentum stalling after the breakout, the upper resistance level of this pattern currently still serves as a support level.
However, since the MACD is on the verge of a potential death cross and is closely moving along the signal line, this foundation may be weak.
This opens the door for a retest of $0.19. If a successful rebound from this level occurs, it may form a double bottom pattern, laying a stronger foundation for a reversal.
Currently, the upward trend shows sustained momentum. If this momentum continues, Dogecoin may continue to break through to $0.25, with a potential increase of 24% from the current price.
If this level turns into a support level, the upward trend may extend to the mid-July high of $0.2875, marking a 38% increase and clearing the path for the continuation of the bull market.
Similar to the last time the RSI reached 30, the accumulation of momentum requires about a month. As Dogecoin (DOGE) is dealing with the impact of new tariffs on over 90 countries in the U.S., it may continue to consolidate in August.
By September, potential rate cuts and the approaching October deadline for the spot DOGE ETF decision may bring a new wave of capital inflow.
