Dogecoin traded bullish even in its other trades, though it declined towards the end of the week, according to crypto analyst Cantonese Cat. In a livestream on August 19, he said that the coin is still trading with good long-term technical support despite the sideways price action.
According to the analyst, the cryptocoin is trading above its 20-week moving average, as well as a longer-term 20-month moving average, which in some cases can be seen as a sign of an extended bullish pattern. He said that the buyers are still at work on these levels, despite a negative daily chart.
According to him, Dogecoin price is currently trading below its 20-day moving average and also beneath the Ichimoku Cloud, which implies consolidation and not an actual breakdown. He said that DOGE has recently created a two-bar bottom pattern, which can be regarded as an indication of demand when support forms.
The coin is now on a retest of the tenkan and kijun levels as shown by the Ichimoku system. This is a decisive point to gain momentum, as viewed by the analyst. In his opinion, Dogecoin must recover these positions to move beyond resistance levels and stay in a bullish trend.
Cantonese Cat put Dogecoin price action into the context of overall market trends. He used TOTAL 3, which is the total crypto market cap without Bitcoin and Ethereum, which is forming a pattern. He explained that this sort of structure is healthy for altcoins in general.
Another reason he cites that altcoins are still in a positive cycle is the fact that Ethereum broke out above one of the key Fibonacci levels. To him, this context facilitates an understanding of the reason Dogecoin has resisted losses on its higher-timeframe supports even as far as the daily. As of its reporting,
The cryptocurency remained open at 0.21466. The analyst pointed out that 20-week and 20-month moving averages on the coin still serve as the key indicators to him in terms of bullish continuation.
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