Dogecoin to Hit $4? Analyst Sees Bullish Breakout

Crypto analyst Cantonese Cat predicts a significant Dogecoin price surge, potentially reaching $4.13. Their analysis, detailed in a recent video, cites several technical indicators supporting this bullish outlook. The analyst dismisses the current negative sentiment among retail investors, arguing that the prolonged consolidation period is a healthy retracement within a larger bull trend. Key indicators supporting this prediction include a cup-and-handle formation on the price chart, an Adam-and-Eve double bottom, and a successful test of the 0.786 Fibonacci retracement level. Furthermore, the analyst points to six consecutive inside bars on both monthly and weekly charts, indicating accumulating energy for a breakout. The presence of a rising 20-month simple moving average, despite the current price trading slightly below it, further reinforces the bullish trend. Crucially, the analyst highlights the lack of selling volume on major exchanges like Binance and Coinbase, suggesting that the supply overhang has been exhausted. Additional evidence includes a “treasure bottom” formation and bullish divergence on the RSI, mirroring similar patterns that preceded previous rallies. While the exact timing of the breakout remains uncertain, the analyst's Fibonacci analysis projects potential price targets of $1.60, $2.26, and $4.13. The analyst cautions against expecting a repeat of Dogecoin's 2021 parabolic surge, instead suggesting a more moderate price increase aligned with a market capitalization in the quarter- to half-trillion dollar range. The overall conclusion is that the confluence of technical indicators strongly points towards a bullish trend reversal for Dogecoin, with the potential for significant price appreciation.

(Source: https://www.newsbtc.com/news/dogecoin/crypto-analyst-4-dogecoin-exhausted-selling-phase/)