Dogecoin Hits Three Year Low but Traders Anticipate a Rebound

Dogecoin has had a difficult month, falling further behind major assets like Bitcoin and Ethereum. The popular meme coin recently dropped to roughly $0.067, marking its lowest point in three years. Despite this sharp decline, market experts are starting to shift their tone as technical signals suggest the heavy selling pressure might finally be cooling off.

Key technical indicators are fueling the optimism. The monthly Relative Strength Index has hit its most oversold level since the 2022 market lows, a metric often viewed as a sign that sellers are exhausted. Some market watchers believe this makes the current support level a prime spot for a bullish reversal rather than a place to remain bearish.

On chain data also provides a reason for potential interest. Weekly active addresses for Dogecoin recently jumped by 16 percent, signaling that more users are becoming active on the network again. When this growth is paired with rare buy signals from the TD Sequential indicator across multiple timeframes, many traders are keeping a close watch to see if this momentum can translate into a sustained price rally.