Dogecoin Setup Points To Imminent And Powerful Upside

Dogecoin (DOGE) may be quietly preparing for its next major rally, as its long-term Relative Strength Index (RSI) structure seems to be setting up for a powerful breakout.

In a post shared on X on January 16, popular pseudonymous cryptocurrency trading expert Trader Tardigrade highlighted Dogecoin’s two-week chart, pointing to a familiar technical pattern that has preceded previous parabolic moves. As he wrote:

“#Dogecoin RSI has retracted for the coming massive surge.”

The setup suggests DOGE is entering a compression phase, a period where momentum cools down before price accelerates sharply higher.

RSI Reset Mirrors Previous Dogecoin Rallies

RSI is a momentum indicator that measures whether an asset is overbought or oversold. When RSI cools off after extended rallies, it often creates room for the next impulsive move.

On Dogecoin’s two-week chart, RSI has retraced into historically bullish territory, similar to previous accumulation zones that preceded explosive upside cycles in 2020 and 2021.

The current structure shows DOGE consolidating after its last major impulse, forming a familiar base before resuming its long-term trend. According to Trader Tardigrade’s analysis, this retracement phase may be nearing completion.

If the pattern repeats, Dogecoin could be setting up for another powerful expansion leg.

$Doge/2-weekly#Dogecoin RSI has retracted for the coming massive surge 🚀 pic.twitter.com/xlFo2psgto

— Trader Tardigrade (@TATrader_Alan) January 16, 2026

Market Structure Shows Multi-Year Accumulation

The chart also highlights DOGE’s cyclical market behavior, where long periods of sideways consolidation precede sudden vertical rallies.

In prior cycles, Dogecoin spent months building support before breaking out into aggressive uptrends. The current price structure shows a similar range forming, with higher lows and tightening volatility, which is a classic sign of accumulation.

At the same time, momentum indicators are curling upward from oversold levels, reinforcing the idea that bearish pressure is fading while buyers regain control.

Currently, DOGE is changing hands at the price of $0.1382, which suggests a decline of 3.8 % in the last 24 hours, a 1.4% drop across the previous seven days, and a 6.1% gain on its monthly chart, per the most recent data.

*Dogecoin price 30-day chart. Source:* *CoinGecko*

Meme Coin Momentum Returns

Dogecoin remains one of the most actively traded meme coins in crypto, with a loyal retail base and frequent social-media-driven demand spikes.

With Bitcoin stabilizing near major levels and risk appetite returning across altcoins, meme coins have once again started attracting speculative capital. Historically, Dogecoin has been one of the first beneficiaries when that rotation begins.

If the RSI breakout plays out as projected, DOGE could be entering the early stages of its next major rally cycle, one that follows the same structural blueprint that has driven its biggest moves in the past.

For the time being, traders are watching closely as Dogecoin’s momentum resets and the next surge quietly loads.