Dogecoin has exhibited bullish behavior in recent trading sessions, even as it faced a slight decline towards the end of the week. According to crypto analyst Cantonese Cat, who shared insights during a livestream on August 19, 2023, the cryptocurrency continues to benefit from strong long-term technical support despite recent price fluctuations.
The analyst noted that Dogecoin is currently trading above its 20-week moving average and its longer-term 20-month moving average. These indicators often signal the potential for an extended bullish trend. Despite a negative daily chart, there remains a robust presence of buyers at these support levels.
Daily Chart Indicators Suggest Consolidation
Cantonese Cat emphasizes that Dogecoin’s price is currently positioned below its 20-day moving average and the Ichimoku Cloud. This situation suggests a phase of consolidation rather than a definitive breakdown. Recently, the coin formed a two-bar bottom pattern, which typically indicates demand when support levels are established. The analyst highlights that Dogecoin is now retesting the tenkan and kijun levels, as represented by the Ichimoku system, marking a critical juncture for potential momentum.
For Dogecoin to maintain its bullish trend, it must reclaim these positions and surpass its resistance levels. This recovery is viewed as essential for sustaining upward movement in the market.
Broader Market Trends Favor Bullish Sentiment
Cantonese Cat contextualizes Dogecoin’s performance within the broader altcoin market, referencing the total cryptocurrency market capitalization excluding Bitcoin and Ethereum, known as TOTAL 3. This segment is currently forming a healthy structure, which is encouraging for altcoins overall. Additionally, the recent breakout of Ethereum above a significant Fibonacci level further supports the notion that altcoins remain in a positive cycle.
The analyst asserts that these market dynamics contribute to Dogecoin’s ability to resist losses at higher-timeframe support levels, even in the face of daily volatility. As of the latest reporting, Dogecoin’s price stands at approximately $0.21466. The 20-week and 20-month moving averages continue to serve as key indicators for assessing the potential for bullish continuation.
In summary, while Dogecoin experiences some short-term challenges, the underlying technical indicators and broader market trends suggest that it remains well-positioned for potential gains in the future.
