During a livestream on August 19, cryptocurrency analyst Cantonese Cat (@cantonmeow) expressed his opinion that Dogecoin (DOGE) is still maintaining a significant uptrend on larger timeframes, despite short-term volatility that has made many investors pessimistic.
Many are frustrated with Dogecoin, but it continues to experience consistent highs and lows. It remains in an uptrend until proven otherwise, he emphasized.
Signals from Large Timeframes
According to Cantonese Cat's analysis, Dogecoin is currently holding above important moving averages:
the 20-week moving average and the 20-month moving average.
He said this is typical of a healthy underlying uptrend. He added, "I don't day trade. I look at the larger timeframe, and the overall structure is much more important than short-term volatility."
Short-Term Movement: Accumulation within the Trend
On the daily chart, DOGE is under pressure:
The price is below the 20-day moving average.
I was rejected in the Ichimoku cloud a few weeks ago.
"We are currently trying to 'hold at the Tenkan/Kijun backtest area' to gather energy for a new breakout."
In addition, DOGE recently formed a double bottom pattern, an indication of strong buying pressure at support. On the X-Index, Cantonese Cat wrote: "Weekly DOGE: Continues to test the Ichimoku Tenkan, but records higher lows after the recent double bottom pattern."
Market Psychology and the Macro Landscape
One important point he highlighted is the timeframe bias. Many traders tend to over-focus on short-term fluctuations, overlooking the higher-low structure that DOGE formed in its previous cycle.
Cantonese Cat believes that the sideways movement is merely a "pause before resistance," not a sign of the end of the trend. Key resistance areas now include:
The Ichimoku Cloud.
20-day moving average line.
Previously rejected price zones.
Altcoin Market Perspective
He also places Dogecoin's analysis in the broader context of the altcoin market:
Others (market cap excluding the top 10): Just surpassed the 0.5 Fibonacci level but didn't break the 0.618 level, indicating that the market is still accumulating.
Total3 (maximum excluding BTC and ETH): The chart forms a nice "cup and handle" pattern, has broken the 0.86 Fibonacci level, and is likely heading towards new all-time highs.
Kat Cantonese commented, "I can't expect a bearish trend in the entire crypto market, especially after Ethereum surpassed the 0.86 level. Altcoins are still very positive overall."
Result: The main trend remains up.
For Dogecoin, he sees the 20-week and 20-month moving averages as the "main defense lines" of the uptrend. Meanwhile, the daily chart will be the "battleground," as Dogecoin needs to break through the Ichimoku Cloud and short-term resistance levels to regain its upward momentum.
Until these major timeframe supports are broken, the Cantonese Cat's view remains clear: "Dogecoin remains bullish until proven otherwise."
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