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The Dogecoin weekly chart is again at a cluster of technical ranges that one market watcher says affords a positive entry. The pseudonymous dealer Cantonese Cat (@cantonmeow) posted a TradingView snapshot and wrote, “I purchased a bit of bit extra DOGE and Fartcoin final evening, 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 observe 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 exhibits value pulling into the Bull Market Help 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 light the transfer.
Technically, the picture highlights two parts 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 support band, a zone that pattern followers typically watch to evaluate whether or not a breakout is holding or failing.
Associated Studying
The analyst’s put up frames the present retreat as a “back-test” of each options somewhat than a breakdown, implying that demand close to the band might maintain bulls in management if the extent continues to behave as assist.
Whereas the put up is explicitly bullish, the proof introduced is descriptive somewhat than predictive. Nonetheless, the weekly candle has closed above the essential space. So, the configuration is obvious: 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 typically consider such retests for affirmation—searching for stabilization, shrinking downside 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 at all times, that’s one analyst’s interpretation of the chart at a particular second in time; Dogecoin stays unstable, and this week shall be pivotal for bulls trying to substantiate 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