In a recent post on X (formerly Twitter), prominent crypto trader and analyst Josh Olszewicz (@CarpeNoctom) has noted that prominent meme cryptocurrency Dogecoin (DOGE) might finally have its time in the sun.
His tweet implies that the long-standing downtrend in the Dogecoin-to-Bitcoin ratio might be nearing an inflection point.
Dogecoin has bled out against Bitcoin’s dominance. However, when the DOGE/BTC pair bottoms out and begins to reverse, it has often acted as a canary in the coal mine for broader altcoin market rallies.
DOGE would need to establish a higher low or break out of its multi-year descending channel to regain its mojo.
After the parabolic blow-off top in early 2021 (the fateful Elon Musk/SNL era), the DOGE/BTC pair has been trapped in a massive downtrend.
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However, the pair is currently compressing into a tight range. It has levels last seen right before the massive 2021 breakout (the accumulation zone of late 2020).
There has been a significant tightening of the weekly candles, and it is worth noting that periods of prolonged volatility compression often precede explosive expansion (in either direction).
CarpeNoctom’s bullishness is likely due to a falling wedge breakout or a mean-reversion bounce from these historical cyclical lows.
If DOGE/BTC can break its bearish market structure, it could potentially attract heavy speculative inflows.
Dogecoin’s bullish momentum
Dogecoin is displaying solid short-term bullish momentum is quite evident.
The meme cryptocurrency is currently trading at $0.08375. It has secured its spot as the #11 cryptocurrency by market capitalization.
The asset is up 4.3% on the day, with a 24-hour trading range between $0.07913 and $0.08562.
Furthermore, it is slightly outperforming Bitcoin on the daily timeframe, up 2.3% against BTC.
Dogecoin’s performance over the last month shows a strong, sustained uptrend. It is up 8.7% over 24 hours, 21.4% over 7 days, 20.3% over 14 days, and 15.6% over the last 30 days. Buyers have been consistently stepping in over the past month, building a foundation of higher lows.
Speculative capital is returning to the asset, but it remains to be seen whether this momentum will actually last.
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