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Dogecoin (DOGE) traded under pressure on Wednesday as the broader crypto market struggled to gain momentum. After a steep decline that pushed it to multi-year lows, traders are watching for signs that the meme coin could be approaching a potential bottom.
Notably, over the past week, the world’s largest memecoin by market capitalization has slipped by nearly 2% as investors continue to reduce exposure to major digital assets.
According to analyst Ash Crypto, Dogecoin has reached its most oversold level in history after a dramatic fall from its previous highs. The analyst highlighted that DOGE is now trading roughly 90% below its all-time high, with the token recently falling to a three-year low near $0.067.
The analyst pointed to Dogecoin’s monthly Relative Strength Index (RSI) as a major factor in the argument for a potential reversal. The RSI indicator, which measures whether an asset is overbought or oversold, has fallen below levels recorded during the 2022 crypto market bottom.
Amid the downturn, the steep decline has intensified debate among traders over whether Dogecoin is approaching a long-term recovery point or facing further weakness. Meme coins have struggled throughout the current market cycle as investors increasingly favor projects offering real-world applications, staking opportunities, and regulatory clarity.
 
Despite the sharp decline, some analysts believe DOGE could offer an attractive entry point if buyers begin returning to the market.
Analyst MikybullCrypto argued that traders should be cautious about maintaining a bearish outlook while Dogecoin sits near a major macro support zone.
The expert suggested that the current oversold conditions could eventually fuel a strong reversal, with higher price targets becoming possible if bullish momentum returns.
While DOGE’s price performance remains weak, on-chain data indicates that activity around the network may be improving.
Popular analyst Ali Charts noted that weekly active Dogecoin addresses have climbed 16%, increasing from about 38,000 to 44,000. The rise suggests more users are interacting with the network even as DOGE continues to trade well below its previous highs.
At press time, DOGE was trading at $0.06968 reflecting a 0.48% drop over the past 24 hours.