The weekly chart for Dogecoin has returned to a range of technical levels that one market observer believes represent a favorable entry point. The anonymous trader Cantonese Cat (@cantonmeow) shared a quick glance on TradingView and wrote: "I bought more Dogecoin and Farcoin last night, and maybe you knew that. I believe this is an excellent risk-to-reward ratio, and I will do my best to buy anyway."
In the attached follow-up note with the chart, the analyst summarized the situation as follows: "Re-testing the support range of the rising DOGE market. Breaking the diagonal trendline of the bearish market and re-testing it."
Best Dogecoin buy signal?
The chart, created on August 3, tracks the DOGE/USD pair (Coinbase) on the weekly timeframe and shows the price entering the rising market support range - an enveloping indicator drawn with two lines - which is currently defined around $0.19025 - $0.20703.
At the time of taking the snapshot, the weekly candles show O: $0.24076, H: $0.24860, L: $0.18855, C: $0.19945, reflecting a decrease of approximately 17.15% over the week with a few hours left until the trading session ends. This decline follows a strong two-week rally that pushed Dogecoin above $0.20 before selling pressure eased.
Technically, the picture highlights two factors that exceed the support range. The first is a descending trendline drawn through the week's lower peaks, which the price broke on July 16 and is now testing from above. The second factor is the intersection of the trendline with the rising market support range, an area that trend followers typically monitor to see if the breakout will hold or fail.
The analyst sees the current pullback as a "back test" for both properties and not a breakdown, meaning that demand near this range may help buyers gain control if the level continues to act as support.
Although the article is clearly positive, the evidence presented is more descriptive than predictive. Nonetheless, the weekly candle closed above the key area. So, the situation is clear: after breaking the long-term diagonal barrier, DOGE returns to the $0.19-$0.21 area, where the support range coincides with the previous descending trendline.
Momentum and trend traders often evaluate such new tests for confirmation - looking for stability, a decrease in downward momentum, or a quick rebound above the midpoint of the range.
The cantonal cat's message summarizes this outlook in a simple risk stance. By stating: "I believe this is an excellent risk-to-reward ratio," the commentator hints that, from his perspective, the recent technical levels dictate a slight risk versus upside potential if the breakout continues.
As is usually the case, this is merely an analyst's interpretation of the chart at a specific moment; Dogecoin remains volatile, and this week will be a crucial week for bulls to try to confirm the upward momentum, but the risk-to-reward ratio looks very good.