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Crypto analyst Cantonese Cat (@cantonmeow) is describing the weekly Dogecoin/ USD chart as a technical magnificence attributable to a number of indicators aligning without delay. Within the newest chart shared on X, a number of key options stand out, together with a long-term diagonal trendline, converging 100-week and 200-week easy transferring averages (SMAs), and a noteworthy Ichimoku Cloud setup. “I haven’t seen one thing this stunning with this a lot confluence for some time,” the analyst notes.
Why Dogecoin Seems to be ‘Stunning’ Bullish
A dominant downward-sloping diagonal trendline, drawn from Dogecoin’s historic 2021 peak of roughly $0.70, units the tone for the chart’s construction. Since Dogecoin’s meteoric rise and subsequent fall in 2021, weekly candles have persistently responded to this diagonal, which has acted as a barrier to bullish advances and sometimes served as a spot for worth consolidation.
Associated Studying
In November final 12 months, DOGE broke above the development line. Nonetheless, over the previous 4 weeks, Dogecoin has as soon as once more drifted downwards into shut proximity to this trend-defining line. Dogecoin’s present revisit to the trendline represents a retest of the earlier breakout; a profitable protection at this stage would verify the retest, a state of affairs extensively considered extremely bullish from a technical evaluation perspective.
One other point of interest is the connection between the 100-week easy transferring common (SMA) and the 200-week SMA. Within the chart shared by Cantonese Cat, the 100-week SMA is drawn in blue, whereas the 200-week SMA is depicted in black. The 100-week SMA is at the moment hovering at $0.1456, whereas the 200-week SMA sits at $0.1412.
Notably, the latest crossing of the 100-week SMA above the 200-week SMA has fashioned a bullish “golden cross,” a technical occasion sometimes interpreted as a robust optimistic sign for worth momentum from a technical evaluation perspective.
Associated Studying
The chart additionally incorporates an Ichimoku Cloud, which additional intensifies the convergence. The weekly Ichimoku setup (generally utilizing parameters 9, 26, 52, 26) shows a convergence with the weekly SMAs round $0.14. At current, Dogecoin’s worth has approached the higher boundary of that Cloud, and stayed above it.
If the value had been to maintain a detailed above the Cloud, it might strengthen the case for a bullish continuation. Notably, the Future Cloud Outlook can also be bullish. The main spans (projected ahead) round $0.24 to $0.28 recommend a broad zone that would both cap upside strikes or act as a magnet, ought to consumers keep conviction.
Cantonese Cat refers to this juncture as “stunning” exactly due to the overlapping significance of those 4 indicators. If Dogecoin stays above important assist stage ner $0.145 for consecutive weekly closes, the chance of a sustained uptrend can rise significantly.
At press time, DOGE traded at $0.17417.
Featured picture created with DALL.E, chart from TradingView.com