Dogecoin’s Potential Reversal: An Analyst Draws Parallels to AMD’s Ascendance
In a noteworthy observation, prominent crypto analyst Cantonese Cat (@cantonmeow) suggests that Dogecoin’s recent price retreat is not indicative of a breakdown, but rather a strategic setup. The analyst draws a compelling parallel between Dogecoin’s current market behavior and that of Advanced Micro Devices (AMD) prior to its significant rally last year, prompting speculation about a potential upward trajectory for the popular meme coin.
Decoding the AMD Analogy: A Blueprint for Dogecoin’s Future?
The core of Cantonese Cat’s thesis, articulated in an X post on December 31, centers on specific market indicators. According to the analyst, a confluence of slipping prices, diminishing trading volume, and a general reluctance among the public to adopt a bullish stance creates an optimal risk/reward scenario for a potential reversal.
“I said that about AMD last year. I’m saying that about DOGE right now,” Cantonese Cat remarked. “The lower price goes down on low volume. The more worried influencers are to publicly be bullish on it. The less people care about this. The better risk-reward ratio there is.”
This perspective suggests that periods of low enthusiasm and declining prices on weak volume can often precede substantial market moves, as marginal sellers exhaust their positions without attracting significant new supply.
Technical Analysis: Dogecoin’s Position within Fibonacci Retracements
A December 31 chart shared by Cantonese Cat illustrates Dogecoin’s price action against key Fibonacci retracement levels, derived from its preceding market movement
About The Author
