Dogecoin's Long-Standing Downtrend May Be Reversing

Prominent crypto trader and analyst Josh Olszewicz (@CarpeNoctom) believes that Dogecoin (DOGE) might be due for a turnaround. The DOGE/BTC pair has been in a long-standing downtrend, but it could be nearing an inflection point.

Olszewicz's tweet suggests that the DOGE/BTC pair is currently compressing into a tight range, with levels last seen right before the massive 2021 breakout. This compression often precedes explosive expansion, and Olszewicz believes this could lead to a bullish reversal for Dogecoin.

Dogecoin has been displaying solid short-term bullish momentum, with a 4.3% daily increase and a 24-hour trading range between $0.07913 and $0.08562. The asset is currently up 8.7% over the last 24 hours, 21.4% over 7 days, 20.3% over 14 days, and 15.6% over the last 30 days.

Olszewicz's bullishness is likely due to a falling wedge breakout or a mean-reversion bounce from these historical cyclical lows. If DOGE/BTC can break its bearish market structure, it could potentially attract heavy speculative inflows and give Dogecoin a much-needed boost.