Analyst Predicts Dogecoin Rally Following Ethereum’s Resistance Break
Cantonese Cat's analysis suggests that Dogecoin is nearing the end of a multi-year accumulation phase, with recent declines seen as part of this process rather than a trend break. No specific price targets were provided, but the setup is said to be maturing alongside broader "risk-on" signals.
Key Points
- Dogecoin has been forming a rounded bottom pattern over 4-5 years, indicating a large base formation.
- The recent market drop is viewed as a healthy deleveraging event, not a break in the upward trend.
- Dogecoin typically follows Ethereum with a lag when ETH breaks major resistance levels.
- DOGE moves have historically trailed small-cap risk cycles by several months, particularly lagging behind the IWM ETF breakout by 2-4 months.
- Lower lows in DOGE do not necessarily invalidate its setup; similar patterns preceded past rallies.
- Emphasis is on Ethereum's strength leading Dogecoin's subsequent rise, with timing being more crucial than specific price targets.
At press time, Dogecoin was trading at $0.20.
