Dogecoin appears to be attracting renewed attention from market observers, with some analysts suggesting that the meme coin may be positioning itself for a potential price rebound. A pseudonymous analyst known as Cantonese Cat has highlighted what they describe as “great risk-reward” in Dogecoin’s price outlook, pointing to a recent 8% increase over the weekend as a possible sign of a new uptrend [1].

According to the analysis, the price has broken a key bear market trendline that had previously kept DOGE in a downtrend since late July. This development has led to a retesting of a “bull market” support band, which, if confirmed, could act as a catalyst for further gains. Coinglass derivatives data shows that speculative demand is increasing, with open interest rising by 2.43% to $3.15 billion, indicating that traders are becoming more active in the DOGE market [1].

Further analysis from Cantonese Cat highlights a falling wedge pattern, which has now been validated as a potential breakout structure. The analyst noted that a successful retest of the trendline has confirmed it as support, marking a higher low and reinforcing the potential for an upward move. Momentum indicators such as the RSI and MACD also support a bullish bias, with the RSI showing buyers are back in control and the MACD maintaining its lead over the signal line [1].

If the current momentum holds, the price could target the $0.25 level, which would represent a 25% increase from its current price. Should this resistance level be converted into support, the rally could extend toward the mid-July high of $0.2875, a potential 38% gain and a clear indication of a broader bull run [1].

In parallel, the Binance Long/Short Ratio stands at 2.98, with 75% of traders positioning long, reinforcing the bullish sentiment currently observed in the market [1].

However, the market is still navigating macroeconomic uncertainties, particularly with the looming U.S. tariff increases set to take effect on August 7. These developments have tempered enthusiasm for riskier assets, including meme coins like Dogecoin. That said, expectations for a potential September rate cut remain strong, and this could stimulate renewed inflows into risk assets like cryptocurrencies [1].

Cantonese Cat has also indicated their own position in the market, stating that they have increased their exposure to Dogecoin, describing the current price levels as a favorable entry point [1].

Source: [1] Dogecoin Price Prediction: Analyst Calls This the Perfect Entry – Is DOGE About to Explode? (https://cryptonews.com/news/dogecoin-price-prediction-analyst-calls-this-the-perfect-entry/)