Dogecoin Shows Bullish Signals Similar to 2020, Analyst Observes

Dogecoin’s current weekly chart is echoing patterns from its 2020 bull run, according to analyst Cantonese Cat. Key indicators, including the Global M2 Liquidity Index and WaveTrend/Weighted Trend Oscillator, suggest a potential bullish trend similar to late 2020. With Dogecoin trading at $0.154, the indicators imply a shift towards recovery and increased liquidity could reinvigorate interest in DOGE as a speculative asset.

Dogecoin’s weekly chart is displaying signs reminiscent of its 2020 bull phase, as per crypto analyst Cantonese Cat (@cantonmeow). Their recent composite chart evidences this trend, showcasing Dogecoin’s price action alongside the Global M2 Liquidity Index and the WaveTrend/Weighted Trend Oscillator (WTO). The alignment seen now is similar to what occurred in late 2020, prior to DOGE’s jump from fractions of a cent to a peak of $0.74 in May 2021.

Currently, Dogecoin is priced at $0.154, representing a 68% decline from its December 2024 high of $0.484. The chart indicates a pullback from December to April with a specified floor at $0.13. This visual bears similarities to a previous illustration by Cantonese Cat prior to the 2020 breakout, highlighting a rounding pattern leading to a substantial price increase.

The Global M2 Liquidity Index, which reflects the total money supply across major currencies, has been stable since 2022 but has recently begun to rise again. As of now, it has reached a level of 97, indicating an upward trend similar to prior years, suggesting increased liquidity which typically drives capital into risk assets like Dogecoin.

The WaveTrend/Weighted Trend Oscillator (WTO), which is commonly used to assess overbought or oversold conditions, currently indicates a bullish reversal. Having bottomed out and crossed positively in December 2020, it appears to be setting up for a similar upward movement now. These indicators suggest that Dogecoin’s momentum is shifting away from oversold territory towards a recovery phase.

Cantonese Cat posits that Dogecoin’s current price compression, coupled with increasing global liquidity and improving momentum, mirrors the conditions that previously led to an impressive performance against other digital assets. Despite its meme status, Dogecoin tends to behave like a speculative asset, influenced heavily by liquidity conditions rather than its intended purpose as a payment system. Currently, DOGE’s trading value stands at $0.155.