The weekly trend of Dogecoin shows that it has returned to a technical level concentration zone. I bought more Dogecoin last night, feeling that the risk-reward ratio for this operation is very high, and I will try my best to buy regardless of the outcome.
The current trend is summarized as 'DOGE bull market support zone backtest, diagonal bear market trend line breakout and backtest.'
This chart from August 3 tracks Dogecoin/USD (Coinbase) on a weekly basis, showing that the price has entered the bull market support zone — that is, the range from $0.19025 to $0.20703.
At the time of the screenshot, the weekly candlestick's O point is $0.24076, H point $0.24860, L point $0.18855, C point $0.19945, showing that the remaining time this week has dropped by about 17.15%. In fact, Dogecoin had previously risen for two consecutive weeks, briefly breaking through $0.20, but then sellers gradually suppressed the upward momentum.
From a technical perspective, there are two key points in the chart besides the support zone.
One is that there is a downward trend line crossing the lower weekly high point, the price broke through this high point on July 16 and is now testing above it;
Secondly, the intersection of this trend line and the bull market support zone is a place that trend followers often pay attention to, used to judge whether the breakout is sustained or failed.
The current pullback is a 'backtest' of these two features, not a crash.
It means that if this level can continue to serve as support, the demand near the swing may keep the bulls in control. Although this view is obviously bullish, the evidence is descriptive rather than predictive, but the fact is that the weekly close is above the key area.
The trend chart is very clear: after breaking through the long-term diagonal resistance, Dogecoin is returning to the $0.19 to $0.21 range, where the support level overlaps with the previous downward trend line.
Of course, Dogecoin is still very volatile, and this week is crucial for bulls wanting to confirm momentum, but the risk-reward ratio does look good. As of the time of writing, the trading price of DOGE is $0.199.
