Will Dogecoin (DOGE) See a Drop in August? Latest Technical Analysis!

Jakarta, Pintu News – Dogecoin (DOGE) has started the new trading week on a challenging note. Despite its technical gains, its current position looks vulnerable due to pressure from various technical indicators. Market analyst who goes by the pseudonym Cantonese Cat has shared some findings that suggest Dogecoin (DOGE) may need to undergo a correction before it can resume its rise.

Dogecoin (DOGE) Technical Analysis

On a logarithmic Fibonacci chart drawn from the 2024-2025 range, Dogecoin (DOGE) managed to close above the 0.618 level for $0.262 last week. This is a zone that has stymied every breakout attempt since January. This close has high technical significance, signaling a possible switch from recovery to trend expansion.

Nonetheless, Cantonese Cat analysts warned that despite the bullish market structure, there is a chance that Dogecoin (DOGE) will experience a dip to retest the support level before resuming the upside. This is reinforced by the Bollinger Band panel which indicates a risk of short-term reversion. Dogecoin’s (DOGE) weekly closing price of $0.267 was the first in the past eleven months to end outside the upper band, which is currently near $0.262.

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Ichimoku and Bollinger Band Indicator

The Ichimoku snapshot shows similar progress but faces resistance. The price has surpassed the conversion line (Tenkan-sen) and baseline (Kijun-sen), which confirms the bullish momentum. However, the price is still below the weekly Ichimoku cloud. Senkō Span B that defines the lower limit of the cloud is around $0.28-$0.29, which is almost exactly where Dogecoin (DOGE) stalled on the last trading day of last week.

Cantonese Cat characterized this area as “Ichimoku cloud resistance” and suggested that until there is a decisive close through the cloud, the level should be considered a supply zone. A short drop would allow the Kijun-sen (around $0.23) and the 0.618 Fibonacci level to form a confluence which could provide a higher low next.

Long-term Outlook and Investment Strategy

Despite the potential for a short-term decline, Dogecoin’s (DOGE) long-term market structure remains bullish. The double-bottom formed around $0.15 was overcome in July with the weekly candle engulfing the previous eleven weeks of supply, signaling a change in control from sellers to buyers. The latest candle, although smaller, has retained any gains from the breakout.

Cantonese Cat described that this development is very bullish, although there may be a dip early in the week to reset some technical indicators. If Dogecoin (DOGE) manages to maintain support in the gray zone described, this could be a jumping-off point for further progress towards the mid $0.30s range.

Conclusion

Although Dogecoin (DOGE) faces some short-term technical obstacles, its long-term outlook remains positive. Investors and market watchers should pay attention to the technical indicators discussed to make informed investment decisions. Dogecoin (DOGE) price movements in the coming weeks will be an important determinant of future trend direction.

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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• NewsBTC. Dogecoin Rally on Thin Ice, Sudden Shakeout. Accessed on July 22, 2025