Dogecoin continues to exhibit bullish tendencies, even amidst recent fluctuations in its price, according to crypto analyst Cantonese Cat. In a livestream on August 19, 2023, he noted that despite a downturn toward the week’s end, the cryptocurrency maintained strong long-term technical support. He highlighted that Dogecoin is currently trading above both its 20-week moving average and its 20-month moving average, indicators that may signal a sustained bullish trend.
Cantonese Cat emphasized that although Dogecoin’s daily chart presents a negative outlook, the coin remains above critical long-term support levels. He explained that the recent price action reflects consolidation rather than a definitive breakdown. Specifically, Dogecoin is trading below its 20-day moving average and beneath the Ichimoku Cloud, which suggests that while the price is under pressure, it has not lost its underlying support.
Indicators Highlight Potential for Recovery
The analyst pointed out that Dogecoin has formed a two-bar bottom pattern, often interpreted as a sign of demand at support levels. Currently, the coin is undergoing a retest of the tenkan and kijun levels indicated by the Ichimoku system, which he believes is a pivotal moment for gaining upward momentum. For Dogecoin to maintain its bullish trajectory, it must successfully reclaim these levels and move beyond prevailing resistance.
Cantonese Cat contextualized Dogecoin’s performance within the broader altcoin market dynamics. He referred to the TOTAL 3 metric, which excludes Bitcoin and Ethereum from total cryptocurrency market capitalization, noting that it is forming a healthy pattern for altcoins. He further explained that the positive sentiment surrounding altcoins is bolstered by Ethereum’s recent breakout above significant Fibonacci levels.
As of the latest update, Dogecoin is trading at approximately $0.21466. The analyst reiterated the importance of the 20-week and 20-month moving averages as key indicators for potential bullish continuation. He also mentioned that these levels are crucial for understanding why Dogecoin has been able to resist larger losses, even amid negative daily trends.
In summary, while Dogecoin faces challenges in the short term, key technical indicators suggest that the cryptocurrency still possesses the potential for recovery and continued bullish momentum, contingent upon maintaining critical support levels.
