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The Dogecoin weekly chart is again at a cluster of technical ranges that one market watcher says gives a positive entry. The pseudonymous dealer Cantonese Cat (@cantonmeow) posted a TradingView snapshot and wrote, “I purchased somewhat bit extra DOGE and Fartcoin final night time, however you just about knew that. I believe it’s nice risk-reward right here and that I’ll do what I can to purchase anyway.”
In a follow-up word connected to the identical chart, the analyst summarized the setup as a “DOGE Bull market assist band back-test. Diagonal bear market trendline breakout and back-test.”
Finest Dogecoin Purchase Sign?
The chart, created August 3,, tracks DOGE/USD (Coinbase) on the weekly timeframe and reveals value pulling into the Bull Market Assist Band—an envelope indicator plotted as two strains—now marked round $0.19025–$0.20703. On the time of the screenshot, the weekly candle displayed O: $0.24076, H: $0.24860, L: $0.18855, C: $0.19945, reflecting a drop of roughly 17.15% on the week with hours left within the session. The drawdown follows a pointy two-week advance that pushed Dogecoin into the higher $0.20s earlier than sellers pale the transfer.
Technically, the picture highlights two components past the assist band. First is a descending trendline drawn throughout decrease weekly highs, which value moved above on July 16 and is now testing from the topside. Second is the confluence between that trendline and the bull market assist band, a zone that development followers usually watch to evaluate whether or not a breakout is holding or failing.
Associated Studying
The analyst’s submit frames the present retreat as a “back-test” of each options somewhat than a breakdown, implying that demand close to the band may hold bulls in management if the extent continues to behave as assist.
Whereas the submit is explicitly bullish, the proof introduced is descriptive somewhat than predictive. Nevertheless, the weekly candle has closed above the essential space. So, the configuration is evident: after piercing a long-running diagonal barrier, DOGE is revisiting the $0.19–$0.21 space, the place the assist band is aligned with the previous downtrend line.
Associated Studying
Merchants who subscribe to momentum-and-trend methodologies usually consider such retests for affirmation—searching for stabilization, shrinking draw back momentum, or a swift restoration again above the midline of the band.
Cantonese Cat’s message distills that view right into a easy danger stance. By stating “I believe it’s nice risk-reward right here,” the commentator is signaling that, in his opinion, the close by technical ranges outline danger tightly relative to potential upside ought to the breakout maintain.
As all the time, that’s one analyst’s interpretation of the chart at a particular second in time; Dogecoin stays unstable, and this week will probably be pivotal for bulls making an attempt to verify the momentum, however the risk-reward ratio appears fairly good.
At press time, DOGE traded at $0.199.
Featured picture created with DALL.E, chart from TradingView.com
