The weekly chart of Dogecoin shows that it has returned to a key technical convergence zone. Last night, I added some more DOGE, believing that the cost-performance ratio of this move is extremely high, and I will seize the opportunity to enter the market regardless.
The current market can be summarized as: 'DOGE is retesting the bull market support zone while breaking through and pulling back on the diagonal bear trend line.'
This weekly chart captured on August 3 is based on Dogecoin/USD (Coinbase), and you can see that the price has returned to the key support range, which is between $0.19025 and $0.20703.
At that time, the opening price of the candlestick was $0.24076, the highest reached $0.24860, the lowest dipped to $0.18855, and the closing price settled at $0.19945, indicating that the price dropped by about 17.15% within the week. It is worth noting that DOGE had previously risen for two consecutive weeks, even briefly breaking through $0.20, but then selling pressure increased, gradually suppressing the price.
From a technical analysis perspective, in addition to the bull market support zone, there are two key points of interest in the chart:
First, the descending trend line that extends from several lower weekly highs was broken by the price on July 16 and is currently in the pullback stage.
Second, the intersection of this descending trend line with the bull market support zone is an important area that trend traders often use to judge the validity of a breakout.
The current decline is more of a pullback to these two technical structures rather than a trend reversal.
In other words, as long as this area can still hold effectively, the market's buying demand may allow bulls to maintain an advantage. Although this view leans towards optimism and is based more on descriptive rather than predictive evidence, one thing is clear — the current weekly chart is still above the key support.
The overall pattern is very intuitive: after breaking through long-term diagonal pressure, DOGE is currently retesting the $0.19 to $0.21 range, which is not only a support zone but also technically overlaps with the previous downtrend line.
Of course, Dogecoin is still experiencing severe volatility, and this week is undoubtedly crucial for bulls who want to see the trend clearly before taking action. However, as it stands, the risk-to-reward ratio is still quite attractive. At the time of writing, DOGE is priced at $0.199.