Dogecoin Sheds Its 'Lower-Band Prison' as Daily Trend Flips
Dogecoin (DOGE) has seen a significant surge, climbing approximately 17% since its December 31 low. Crypto analyst Cantonese Cat suggests this rebound is more than just a fleeting "dead-cat bounce," indicating a fundamental shift in its trading dynamics within the Bollinger Bands on the daily chart. This renewed momentum positions DOGE for a potential "regime change" after months of suppressed activity.
Daily Chart Signals a Bullish Turn
The price action reveals a clear change in character for DOGE. After an extended period of trading in the lower half of its Bollinger Bands, Dogecoin has broken free, moving into the upper half of the range. This transition is often an early indicator of a rotating trend, signifying a move away from sustained downward pressure. The analyst highlights that DOGE recently closed around $0.1405, now trading above its 20-day basis line near $0.1348. This basis line is crucial; maintaining a position above it keeps the price in the bullish upper band region, where trends typically exhibit more strength.
Weekly Analysis and Ambitious Price Targets
Zooming out to the weekly chart, Cantonese Cat frames Dogecoin's current trajectory within an Elliott Wave sequence, interpreting the recent downturn as a Wave 2 correction poised to precede a significant Wave 3 explosion. Key Fibonacci retracement levels are in play, with DOGE currently navigating between the 0.382 retracement near $0.1177 and the 0.5 level near $0.1542. Higher resistance points are marked at $0.2021 (0.618), $0.2477 (0.707), and potentially reaching towards a long-term target in the "$9 region" for this cycle. Furthermore, a comparison with the iShares Russell 2000 ETF (IWM) suggests a historical pattern where DOGE lags IWM's bull-phase breakouts by 2-4 months, hinting that the current rally could be a delayed but powerful echo of broader market movements. For sustained upside, breaking above the upper Bollinger Band region (~$0.1564) and the 0.5 Fib level ($0.1542) remains paramount.
