Dogecoin has once again dipped into oversold territory on its 4-hour chart on Tuesday, marking the most pronounced level of selling pressure since the sudden capitulation on February 3. During that episode, the price plunged to around $0.20 before rebounding by 45% within the same trading day—a move that underscored how quickly Dogecoin can rally from oversold conditions.

Dogecoin Price Plunges Into Oversold Zone

In an analysis today, crypto Analyst Cas Abbé (@cas_abbe) highlights an RSI reading that has dipped to 30 on Tuesday, indicating that selling pressure may be nearing its limit. Dogecoin’s path to this oversold level began after it failed to maintain momentum near $0.28.

The cryptocurrency currently trades around $0.25, a zone that Abbé identifies as historically prone to strong support. He suggests that negative sentiment toward memecoins triggered by the LIBRA meme coin disaster by Argentinian President Javier Milei appears to have reached unprecedented lows. This, according to him, could paradoxically create an attractive accumulation opportunity.

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Abbé projects that Dogecoin could stage a short-term push to $0.30, a psychologically significant level that coincides with prior resistance. A move beyond $0.30 could open the door for a test of the yearly high, although a sustained uptrend may hinge on how broader market sentiment evolves and whether broader risk-appetite improves.

“DOGE has reached its most oversold level since the February 3rd capitulation. Sentiment for memes has reached an all-time low, which also presents a good opportunity to accumulate cult memecoins. I’m expecting a short-term move towards $0.3, followed by a new yearly high,” Abbé concludes.

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On Monday, Abbé also discussed a recurring bullish pattern visible on the 3-day chart of Dogecoin. He traced three distinct descending channels in Dogecoin’s price action—one in Q4 2023, another in Q3 2024, and the current one unfolding in early 2025.

In both of the previous instances, Dogecoin broke above the descending channel’s upper boundary, sparking gains exceeding 150%. Abbé points out that Dogecoin appears to be following a similar downward-sloping channel today, ranging from approximately $0.36 at its upper boundary to around $0.24 at its lower end.

If the same pattern holds true, a decisive break above the channel’s resistance could trigger another triple-digit percentage rally. However, if Dogecoin moves below that lower boundary, the bullish setup observed in the prior two breakouts would face potential invalidation.

At press time, DOGE traded at $0.25.

Featured image created with DALL.E, chart from TradingView.com

The recent downturn that has swept across the entire crypto market has pushed meme coin PEPE into oversold territory, according to the Relative Strength Index indicator. Notably, this is only the third time PEPE has reached the oversold levels in its history, particularly on the daily candlestick timeframe. 

Historical data shows that in the previous two instances, PEPE’s price movement followed a specific pattern, leading to a strong recovery after a period of consolidation. As such, the recent PEPE price crash might be the first step before an incoming bull price action.

PEPE Oversold Condition Is A Rare Market Event: What Happened The Last Two Times?

PEPE hasn’t had much history to go by, as it is one of the youngest meme coins with a large market cap. However, over the past year and a half since its launch, PEPE has rarely dipped into oversold territory on the Relative Strength Index (RSI). This makes its current oversold status a significant event in technical analysis, as it has only happened twice before. An oversold condition is when the selling pressure on a crypto becomes too much in a short period, which causes the RSI indicator to fall below 30.

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In both previous instances where PEPE became oversold, the price entered a consolidation phase lasting approximately one month before rebounding with a strong uptrend. This pattern is evident in a PEPE daily candlestick chart shared on social media platform X by crypto analyst Obi (@obi_eths), which illustrated the meme coin’s historical response to oversold conditions.

As shown by the chart below, the first time the meme coin became oversold was in September 2023, four months after its launch. Notably, the oversold condition was followed by 31 days of consolidation before PEPE eventually shot up to new all-time highs in the weeks after. 

A similar trend occurred in August 2024, when PEPE entered into an oversold condition for the second time. This was followed by another 31 days of consolidation up until September 6, when another uptrend began.

Accumulation Phase? What To Expect Next

With PEPE now entering another oversold condition, historical patterns suggest that the meme coin could remain in a consolidation phase for at least the next month. If past trends repeat, this period could serve as an accumulation window for investors who are willing to exercise patience and position themselves ahead of a potential rally.

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The timeline for this anticipated surge should begin on March 10, which is exactly 31 days after PEPE entered the recent oversold condition. From here, the meme coin could attempt to mirror its past rebounds by staging an extended move that could push its price beyond its current all-time high of $0.00002803, which was recorded on December 9, 2024. 

At the time of writing, PEPE is trading at $0.000009544, 65.8% below this all-time high.

Featured image from Shutterstock, chart from Tradingview.com