Dogecoin is about to "wake up" from the oversold zone? Traders expect a 70% rebound.

After an impressive bullish period in July, Dogecoin (DOGE) has entered a correction phase, similar to most other cryptocurrencies in the market. The bears seem to be regaining control, pushing the price of DOGE further down after taking profit around the 0.2 USD zone. However, analysts believe that the current trend is still not enough to break the optimistic sentiment of investors, as many expect this correction to be temporary before Dogecoin continues its bullish momentum.

Dogecoin still maintains a bullish structure

According to analyst KrissPax, the current fall of Dogecoin may be part of a larger bullish trend formation. The price is retracing to test the zone that previously set the stage for a strong increase in the past.

Notably, KrissPax forecasts that the RSI index on the 4-hour frame may drop below 30 once again, similar to the period in June 2025. The last time the RSI fell below this level, the price of DOGE surged over 70% in just one month.

This indicates that if history repeats itself, Dogecoin could continue to recover strongly from the oversold zone. The difference this time is the price: when the RSI hit the bottom last June, DOGE was trading around 0.14 USD, while currently it is around 0.2 USD – meaning it is forming a higher low, a positive signal for the long-term trend.

"Higher lows often lead to higher highs," KrissPax emphasized.

Next target: 0.34 USD?

If DOGE repeats a 70% recovery performance like in June, the next target could be the zone of 0.34 USD. However, this level is still quite far from the historical peak of 0.74 USD reached in 2021.

Data from CryptoRank also shows that Dogecoin has fallen by 1% in August, after closing July with an impressive bullish increase of 27.1%. This aligns with seasonal characteristics, as August is typically one of the strongest fall months for DOGE, with an average decrease of about -10% in the past.

Source: CryptoRankCurrently, Dogecoin is fluctuating around the zone 0.19 – 0.2 USD. If the adjustment scenario continues, the strong support zone is at 0.18 USD – 0.185 USD, where strong buying power was previously recorded. Conversely, to confirm the recovery momentum, DOGE needs to break through the resistance level of 0.225 USD before heading towards the target of 0.3 – 0.34 USD.

Dogecoin is undergoing a necessary correction after a strong increase in July. The bullish trend structure is still maintained thanks to higher lows, and the oversold zone on the RSI may open up opportunities for a strong recovery. However, August is usually not favorable for DOGE, so investors should be cautious and wait for confirmation signals before opening large positions.

Lilly