Dogecoin's Technical Indicators Suggest Bullish Trend

Crypto analyst Cantonese Cat has described the weekly Dogecoin/USD chart as a technical beauty due to the alignment of multiple indicators. The chart, shared on X, highlights several key features, including a long-term diagonal trendline, converging 100-week and 200-week simple moving averages (SMAs), and a noteworthy Ichimoku Cloud setup. The analyst noted that such a confluence of indicators is rare and highly significant.

A dominant downward-sloping diagonal trendline, drawn from Dogecoin’s historic 2021 peak, sets the tone for the chart’s structure. Since Dogecoin’s meteoric rise and subsequent fall in 2021, weekly candles have consistently responded to this diagonal, which has acted as a barrier to bullish advances and occasionally served as a place for price consolidation. In November last year, DOGE broke above the trend line. However, over the past four weeks, Dogecoin has once again drifted downwards into close proximity to this trend-defining line. Dogecoin’s current revisit to the trendline represents a retest of the previous breakout; a successful defense at this level would confirm the retest, a scenario widely regarded as highly bullish from a technical analysis perspective.

Another focal point is the relationship between the 100-week simple moving average (SMA) and the 200-week SMA. The 100-week SMA is currently hovering at $0.1456, while the 200-week SMA sits at $0.1412. The recent crossing of the 100-week SMA above the 200-week SMA has formed a bullish “golden cross,” a technical event typically interpreted as a strong positive signal for price momentum from a technical analysis perspective.

The chart also incorporates an Ichimoku Cloud, which further intensifies the convergence. The weekly Ichimoku setup displays a convergence with the weekly SMAs around $0.14. At present, Dogecoin’s price has approached the upper boundary of that Cloud, and stayed above it. If the price were to sustain a close above the Cloud, it would strengthen the case for a bullish continuation. Notably, the Future Cloud Outlook is also bullish. The leading spans (projected forward) around $0.24 to $0.28 suggest a broad zone that could either cap upside moves or act as a magnet, should buyers maintain conviction.

Cantonese Cat refers to this juncture as “beautiful” precisely because of the overlapping significance of these four indicators. If Dogecoin remains above critical support level near $0.145 for consecutive weekly closes, the likelihood of a sustained uptrend can rise considerably. At press time, DOGE traded at $0.17417.