Analyst Highlights Dogecoin’s Rounded-Bottom Structure Amid Recent Volatility

In his October 28 video, Cantonese Cat focused on Dogecoin’s market structure, arguing that the meme-coin is approaching the end of a multi-year accumulation phase. He characterized the recent price drawdown as a normal part of this process rather than a disruption, emphasizing that the setup remains consistent with broader “risk-on” market signals. While he avoided giving numeric price targets, he suggested that DOGE’s trajectory typically mirrors Ethereum’s movements with a delay, a pattern that has historically preceded Dogecoin’s larger rallies.

Deleveraging Seen as Healthy, Not a Break in Trend

Cantonese Cat highlighted the sharp pullback two weeks ago as a necessary market adjustment. “You just had a great deleveraging event,” he said, noting that a lower low does not indicate a broken trend. He pointed to “a big giant wick” and “a lot of demand down below,” underscoring what he sees as resilient spot support within the rounded-bottom base that has been forming for nearly five years.

Timing Follows Ethereum and Risk Cycles

According to Cantonese Cat, Dogecoin often follows Ethereum after a lag. He explained that when ETH clears major resistance zones, DOGE tends to follow a few months later. “Whenever we get closer to the end of the rounded bottom… Ethereum breaks out above the resistance zone and goes up a lot higher. Thus, Doge runs together with Ethereum,” he said, estimating a delay of roughly two to three months between ETH’s breakout and DOGE’s subsequent move.

He also noted that DOGE historically lags broader small-cap-led risk cycles, such as the Russell 2000 ETF (IWM), by about two to four months, though the exact interval can vary.

Lower Lows Do Not Invalidate the Setup

Pushing back on claims that a sequence of lower lows signals a failed cycle, Cantonese Cat argued that prior cycles saw similar dips before significant rallies. “A lot of people look at this, ‘that’s a lower low…the cycle is over.’ Well, it doesn’t work that way,” he said, framing the recent pullbacks as part of healthy market positioning and reinforcing the persistence of the rounded-bottom pattern.