In a recent technical analysis, analyst Cantonese Cat (@cantonmeow) highlighted that Dogecoin is forming a classic Adam and Eve double-bottom pattern on its 12-hour chart since early August. The left trough ('Adam') experienced a sharp V-shaped sell-off, hitting a low of $0.18864. The second trough ('Eve') shows a broader, rounded base formed through late August and early September, repeatedly defending the lower-mid range around $0.20–$0.21, aligning with the 0.136 Fibonacci retracement at $0.19976 and 0.236 level at $0.20836.
Key Points
- Dogecoin is currently forming an Adam and Eve double-bottom pattern, signaling a potential breakout.
- Key neckline nearly aligns with the 0.618 Fibonacci retracement at $0.24473.
- Short-term price target is around $0.30082, with further potential Fibonacci extension targets.
- Current price is approximately $0.241, not yet breaking through the neckline.
- Support levels are clearly defined, with critical support at $0.18864.
In-Depth Analysis
In classical technical analysis, the Adam and Eve pattern is viewed as a two-stage reversal structure, featuring a swift, vertical capitulation (Adam) followed by a slower, more symmetrical and rounded retest (Eve), often reflecting absorption and base-building. The pattern is validated by a breakout through the 'neckline', defined by the intervening peak between the two troughs. Traditionally, the target for Adam and Eve is calculated by adding the height from the neckline down to the Adam low.If DOGE closes below the Eve trough, it signals failure. However, breaking the neckline on expanding range and follow-through improves quality. Currently, DOGE is testing the $0.24473 neckline, struggling at this level, and its short-term trajectory will significantly impact the market.