Stepping on the bottom for the second time: is the chain slackening or are the Bears resting
After the #DOGE again touched the low in August and then retreated, my verdict is straightforward: there is real support here, but the "double bottom" cannot be confirmed yet. Testing the same point twice only means that someone wants to buy, and does not mean that the trend has reversed.
When he landed there for the first time, the purchase was probably to catch the bottom; and if it was maintained the second time, this indicates a consensus on the value of this area. But if the rebound is accompanied only by a price rise without an increase in trading volume, then it may just be the closing of positions by the Bears, in which the dog is taken for a walk and then returned to its place.
My focus this week is on three things: does the trading volume expand when theداد DOGE bounces, does the trading volume shrink when the pullback occurs, and can the price maintain a recovered low. Rising with an increasing trading volume, falling back with a decreasing volume, and then breaking through the retracement point between the two bottoms twice, only then the double bottom turns from a scenario into a structure.
Conversely, if the retracement is with a low trading volume, the selling pressure above is high, and the price quickly returns below the bottom, then the second support resembles a temporary supply. Testing the bottom repeatedly is not always a good thing, the more often the door knocks, it weakens.
So, I'm in no hurry to give the bottom an identity. What matters this week is not how strong one bullish candle is, but rather whether buyers want to keep spending; without volume support, a double bottom may be just a break in the decline dressed in a new outfit.