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Dogecoin begins the brand new buying and selling week in an unusually precarious spot on its greater‑time‑body chart: technically triumphant, but visibly stretched. A cluster of weekly research shared by pseudonymous market technician Cantonese Cat exhibits the meme‑coin urgent into resistance after an abrupt two‑week rally that added roughly 80 % from the June lows. The analyst cautions that the transfer, although structurally bullish, could require a quick pullback to consolidate earlier than additional positive factors.
Dogecoin Overextended?
On the logarithmic Fibonacci retracement drawn throughout the 2024–25 vary, final week’s candle managed to shut marginally above the 0.618 degree at $0.262 — a zone that has capped each breakout try since January. The shut was technically vital: in classical market geometry, recapturing the 61.8 % retrace typically indicators a transition from restoration to development enlargement.
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“It broke above the 0.618 log fib which may use a bullish again‑take a look at,” Cantonese Cat noticed, including {that a} return to that very same space “would flush again all the way down to again‑take a look at” the double‑backside that shaped round $0.15 earlier within the quarter.
The Bollinger‑Band panel underscores the danger of close to‑time period imply‑reversion. Dogecoin’s weekly shut at $0.267 is the primary in eleven months to settle exterior the higher band, which at the moment sits close to $0.262. Such closes are uncommon on a excessive‑time‑body chart and are sometimes adopted by not less than one candle that re‑enters the bands.
“It’s above the Bollinger band,” the analyst notes. Traditionally, Dogecoin has struggled to keep up altitude when that unfold turns into excessive, typically retreating to the center band — now close to $0.19 — or, in stronger cycles, to the higher band itself on the next week.
The Ichimoku snapshot tells an identical story of progress assembly inertia. Value has vaulted each the conversion line (Tenkan‑sen) and the baseline (Kijun‑sen), confirming bullish momentum on these metrics, however stays pinned beneath the underside of the weekly cloud. The Senkō Span B that defines that decrease cloud boundary sits round $0.28–$0.29, nearly precisely the place Dogecoin stalled on the ultimate buying and selling day of final week.
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Cantonese Cat labels that space “Ichimoku cloud resistance” and warns that till a decisive shut pierces the cloud, the extent needs to be handled as provide. A quick dip, subsequently, would permit the Kijun‑sen (roughly $0.23) and the 0.618 Fibonacci degree to compress right into a confluence that would present the following greater low.
Supporting that concept is the availability‑demand band highlighted in gray on the fourth chart. It spans roughly $0.24 to $0.25 and corresponds to the bottom of February’s breakdown vary. In chart‑sample phrases, the realm acts because the neckline of the double‑backside Cantonese Cat references.
A retracement into that former resistance‑turned‑assist may fulfill each the Fibonacci again‑take a look at requirement and the Bollinger re‑entry, whereas leaving the broader reversal construction intact. The analyst sketches precisely that path on the chart: a pullback into the gray zone, adopted by a renewed advance towards the mid‑$0.30s.
Importantly, none of those observations undermine the longer‑term shift in market structure. The double‑backside round $0.15 resolved greater in July with a weekly candle that engulfed eleven weeks of prior provide, signalling a change of management from sellers to patrons. The newest candles, although smaller, have held each acquire from that breakout. Because the analyst summarizes: “General, these are very bullish developments, even when it dips down early this week to reset some technicals.”
At press time, DOGE traded at $0.277.
Featured picture created with DALL.E, chart from TradingView.com
