The weekly chart for Dogecoin has returned to a significant cluster of technical levels, which one market analyst considers an opportune entry point. The trader known as Cantonese Cat (@cantonmeow) shared a snapshot from TradingView, stating, “I purchased a bit more DOGE and Fartcoin last night, which you probably anticipated. I believe the risk-reward ratio is favorable here, and I plan to continue buying.”
In a follow-up comment linked to the same chart, the analyst described the situation as a “back-test of the DOGE Bull Market Support Band, alongside a breakout and subsequent retest of a diagonal bear market trendline.” The chart, created on August 3, tracks DOGE/USD (Coinbase) in a weekly timeframe, indicating that the price is approaching the Bull Market Support Band, an indicator represented by two lines currently positioned between $0.19025 and $0.20703.
At the time of the screenshot, the weekly candle exhibited an opening price of $0.24076, a high of $0.24860, a low of $0.18855, and a closing price of $0.19945, marking a decline of approximately 17.15% for the week with only a few hours remaining in the session. This decline followed a sharp two-week rally that had pushed Dogecoin into the mid-$0.20s before sellers intervened.
From a technical standpoint, the chart highlights two significant features beyond the support band. The first is a descending trendline drawn across lower weekly highs, which the price surpassed on July 16 and is now testing from the upper side. The second feature is the convergence of that trendline with the Bull Market Support Band, a critical area that trend followers monitor to determine the success or failure of a breakout.
The analyst's commentary suggests that the current retreat should be viewed as a “back-test” of these crucial levels rather than a breakdown, indicating that demand near this band could keep bullish momentum intact if the level remains supportive. Although the analysis is overtly bullish, the information provided is more descriptive than predictive, with the weekly candle having closed above the critical zone.
Consequently, the situation is clear: after breaking through a longstanding diagonal resistance, DOGE is revisiting the $0.19–$0.21 range, where the support band aligns with the previous downtrend line. Traders who rely on momentum and trend analysis often assess such retests for confirmation, looking for signs of stabilization, decreasing downside momentum, or a rapid rebound above the midpoint of the band.
Cantonese Cat succinctly captures this perspective by asserting, “I think it’s great risk-reward here,” signaling that, in his view, the nearby technical levels provide a tight definition of risk relative to the potential upside if the breakout holds. As always, this represents one analyst's interpretation of the chart at a given moment; Dogecoin remains subject to volatility, and this week is crucial for bulls aiming to validate momentum, although the risk-reward ratio appears to be quite favorable. As of the latest update, DOGE was trading at $0.199.
