In a recent post on X (formerly Twitter), prominent crypto trader and analyst Josh Olszewicz (@CarpeNoctom) has noted that prominent meme cryptocurrency Dogecoin ($DOGE) might finally have its time in the sun.

His tweet implies that the long-standing downtrend in the Dogecoin-to-Bitcoin ratio might be nearing an inflection point.

Dogecoin has bled out against Bitcoin's dominance. However, when the $DOGE/$BTC pair bottoms out and begins to reverse, it has often acted as a canary in the coal mine for broader altcoin market rallies.

$DOGE would need to establish a higher low or break out of its multi-year descending channel to regain its mojo.

After the parabolic blow-off top in early 2021 (the fateful Elon Musk/SNL era), the $DOGE/$BTC pair has been trapped in a massive downtrend.

However, the pair is currently compressing into a tight range. It has levels last seen right before the massive 2021 breakout (the accumulation zone of late 2020).

There has been a significant tightening of the weekly candles, and it is worth noting that periods of prolonged volatility compression often precede explosive expansion (in either direction).

CarpeNoctom'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.

Dogecoin's bullish momentum

Dogecoin is displaying solid short-term bullish momentum is quite evident.

The meme cryptocurrency is currently trading at $0.08375. It has secured its spot as the #11 cryptocurrency by market capitalization.

The asset is up 4.3% on the day, with a 24-hour trading range between $0.07913 and $0.08562.

Furthermore, it is slightly outperforming Bitcoin on the daily timeframe, up 2.3% against $BTC.

Dogecoin's performance over the last month shows a strong, sustained uptrend. It is up 8.7% over 24 hours, 21.4% over 7 days, 20.3% over 14 days, and 15.6% over the last 30 days. Buyers have been consistently stepping in over the past month, building a foundation of higher lows.

Speculative capital is returning to the asset, but it remains to be seen whether this momentum will actually last.