Dogecoin's Oversold RSI Sparks Debate Over Buying Opportunity or Bull Trap

Dogecoin [DOGE] is currently at a critical juncture as investors debate whether its record-low RSI reading is a buy signal or a bull trap.

The largest memecoin has lost over $2 billion in market capitalization, with its price currently trading near a three-year low of $0.067.

Historically, extreme RSI readings have marked periods of heavy capitulation and potential buying opportunities, but the current market sentiment is deeply divided.

Rising weekly active DOGE addresses by 16% may indicate renewed market participation and early accumulation, setting up a possible bear trap for short sellers.