Dogecoin Signals 68% Rally Potential as Global Liquidity Surges

Crypto analyst Cantonese Cat has identified a bullish signal for Dogecoin, reminiscent of the patterns seen before its significant rally in 2020-2021. The analyst presented a three-pane composite chart on X, which includes Dogecoin’s price action, the Global M2 Liquidity Index, and the WaveTrend/Weighted Trend Oscillator (WTO).

The top panel of the chart displays weekly candles from 2017 to mid-April 2025, showing Dogecoin’s current price at $0.154, down 68% from its December 2024 peak of $0.484. A hand-drawn black arch traces the December-to-April pullback, with a thick arrow indicating an apparent floor at $0.13. This visual is similar to the pattern seen in late 2020, where a small rounding formation ended with an arrow, followed by a vertical breakout.

The middle panel features the Global M2 Liquidity Index, which combines the broad money supply across major currencies. This index has been moving sideways from 2022 until the beginning of 2025 but has recently resumed its climb, printing 97 on Cantonese Cat’s scale and carving out a higher high. This suggests an increase in systemic liquidity, which tends to migrate into risk assets like Dogecoin.

The bottom pane hosts the WaveTrend/Weighted Trend Oscillator, an overbought-oversold indicator. The WTO plots a fast and signal line on a ±100 band, with moves below –50 reflecting exhaustion. Bullish crossovers of the two lines out of that zone have historically marked durable lows. In December 2020, the oscillator bottomed, turned upward, and crossed positive, precisely as DOGE’s consolidation ended. As of last week, the WTO seems to be printing a bottom again, with the fast line curling up through its signal, hinting that negative momentum is bleeding away.

Cantonese Cat’s analysis suggests that Dogecoin’s price is compressing in a continuation pattern, global liquidity is pushing to fresh cycle highs, and internal momentum has shifted from deeply oversold toward recovery. The last time these signals converged, Dogecoin outperformed every major digital asset for half a year. The analyst’s reminder that Dogecoin trades more like an option on global liquidity than a payment network underscores the potential for significant gains as fresh liquidity returns.

At the time of reporting, Dogecoin was trading at $0.155, hovering above the trendline on the 1-day chart. The convergence of these technical indicators suggests that Dogecoin may be poised for a similar rally to the one seen in 2020-2021, driven by increasing global liquidity and positive internal momentum.