Dogecoin's chance to reach $8: Why you will regret missing this analysis?

The first live stream of Cantonese Cat after several weeks of interruption, which took place on June 15, drew significant attention from the community. In this broadcast, the veteran technical analyst dedicated a notable segment to discuss Dogecoin and the long term structure of this coin. His outlook is not only optimistic but also detailed, with strong technical indicators supporting the forecast that the value of Dogecoin will reach 5–8 dollars in the near future.

Structure of the handle cup

Cantonese Cat begins by explaining the cup and handle pattern on the price chart of Dogecoin, a technical structure that has long been confirmed in securities analysis. He argues that Dogecoin is still in the process of forming this structure and if completed, the meme coin could break through a significant resistance level and reach a price between 5 to 8 dollars.

This analyst particularly emphasizes long term factors when analyzing Dogecoin. He argues that the growth of this coin is not a short-term phenomenon but a gradual process, based on a solid foundation of technical indicators such as the 20-month SMA and the intersection of monthly GAN supply levels. These factors have dominated the entire strong price increase of Dogecoin after 2020, further enhancing the reliability of high value forecasts in the future.

Cantonese Cat continues to analyze further by breaking down the chart by monthly time frames, eliminating short-term noise factors. He points out that Dogecoin is testing an important support level just below the Ichimoku cloud, a popular technical indicator. Although the price did not immediately break through the "monthly cloud" on the first attempt, he believes that Dogecoin will continue to come back and may enter the cloud in the near future. This could happen in two ways: either the coin will rise sharply, or it may continue to fluctuate within a narrow range.

However, he affirmed that the current trend remains positive as the price of Dogecoin is creating higher highs and higher lows, a clear sign of a bull market. This formation indicates that buying pressure remains strong, and short-term corrections are not a cause for concern but rather a necessary step before a strong leap.

! Source: XMThe key factors mentioned by Cantonese Cat are the 20-month SMA, the 20-month simple moving average, which he considers to be the backbone of every Dogecoin bull cycle. He explained that during the strong bull run in early 2021, the price of Dogecoin followed this moving average closely and never broke. When this line finally no longer holds support, the bearish market has begun. Currently, Dogecoin is trading right above this level, and if it maintains above this level, it will likely continue to be a solid foundation for future growth.

Cantonese Cat also believes that this support level will act as a "buy zone" for long term traders, and he himself has decided to buy more Dogecoin in recent days as the price remains stable.

In addition to analyzing support and resistance factors, analysts also pointed out that the stagnation of Dogecoin since April is not a negative sign. On the contrary, the accumulation of value below the logarithmic retracement level of 0.5 from the 2021–2022 downturn may represent an energy accumulation behavior, which helps Dogecoin have enough bounce when entering the next growth phase. The longer the price "consolidates," the stronger the explosion will be when market conditions become favorable.

Altcoin Season and Technical Breakthroughs

Regarding the exact timing of the breakthrough, Cantonese Cat declined to provide a specific forecast about the timeline but believes that a strong breakthrough could occur simultaneously with a broader altcoin season. When Dogecoin returns to the "Ichimoku cloud", that will be a technical green light for strong acceleration. His price target from the cup and handle structure, combined with GAN and Fibonacci supply factors, will converge in the range of $5–$8, a price level that would yield a profit of 3,000–5,000% from the current price.

Finally, Cantonese Cat advises traders not to get caught up in sudden green candles, but rather to accumulate methodically during the "boring" market phase. He emphasizes that the current dormant state of Dogecoin could be the preparation for a major shake-up in the near future. Traders who overlook this phase may "regret missing out on a great opportunity."

At the time of writing, DOGE is trading at $0.177. If the technical indicators that Cantonese Cat is monitoring actually play out as expected, Dogecoin could witness a strong price surge in the near future, with the potential to reach a price of $5–8 in the next cycle.

Taylor