In his latest YouTube video posted on December 6, the analyst behind the popular Cilinix Crypto channel shared an upbeat outlook for the meme-inspired cryptocurrency Dogecoin.
The analyst pointed to Dogecoin’s (DOGE) recent technical breakout above key resistance levels near 9.4-9.5 cents as a bullish signal that could propel the token towards further upside near-term.
[DOGE] broke above this significant resistance level right here at 9.4, 9.5. That was our first take profit. That was also my price target, as I said in my previous videos, broke above that easily. Also broke above 10 cents. So just technically, it looks most likely as well that it will continue rallying up.
The analyst believes the cryptocurrency market is currently in an early stage bull cycle, with money beginning to rotate into meme coins like Dogecoin after flowing first into leaders like Bitcoin (BTC) and Ethereum (ETH).
Usually what happens when bullish momentum comes into the markets is Bitcoin goes first, then Ethereum follows a little bit. Right now, you see that big narratives also do very well. So AI and gaming, etc. And then at some point of time, the meme coins follow, all right? So that’s what you see right now. Shiba Inu is also relatively bullish right now.
With Dogecoin rallying, the analyst thinks there is increased potential for high-profile supporters like Elon Musk to tweet about it.
If Dogecoin becomes bullish, it will be more hyped. If it’s more hyped, there’s a higher chance that Elon Musk tweets about it. And if there’s a higher chance that Elon Musk tweets about it, or something happens with it regarding Tesla, Twitter, whatever, then the price will get more bullish again. So there’s this cycle for Dogecoin as well, which just makes the potential great.
Based on the token’s technical strength and supportive fundamentals, the analyst expects Dogecoin will continue advancing towards his next price targets between 11 and 11.5 cents. However, he cautions that Dogecoin remains highly correlated with Bitcoin, so a sudden drop in Bitcoin could drag Dogecoin back down as well.
The analyst disclosed he and his signal group took a long position on Dogecoin around 8.7 cents, which has proven profitable so far. He says he will continue monitoring the situation and provide updates if the outlook changes. But for now, his base case predicts further upside for the prominent meme coin.
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