Renowned crypto analyst Ali Martinez (@ali_charts) has drawn attention to a possible shift in trend for Dogecoin, noting that the beloved memecoin has revealed a promising bullish signal on its daily chart. Martinez pointed out that the TD Sequential indicator has generated a “buy signal,” indicating a potential price rebound on the horizon.

Latest Development: Dogecoin Signals TD9 Buy Signal

The chart provided, showcasing daily candlesticks of the DOGE/USDT pair, depicts a pattern of 10 days of downward movement. Dogecoin has retraced from its previous highs at around $0.4843 to trade at roughly $0.32, marking a decrease of approximately 35% in recent days. The most recent candle on the chart shows a substantial selling pressure, driving prices down to $0.3200.

“The TD Sequential has indicated a buy signal on Dogecoin’s daily chart, suggesting a potential price rebound!” shared Martinez via X. Martinez’s analysis centers around the TD Sequential, a well-respected tool in the trading community. Developed by Tom DeMark, the TD Sequential aims to pinpoint potential reversals and exhaustion points in price movements by counting consecutive candles in a particular direction.

Typically, the indicator keeps track of up to nine consecutive bullish or bearish candles. Reaching a count of nine during a downward trend often suggests a possible turning point, known as a “TD9 Buy Signal.” Conversely, nine consecutive higher closes during an uptrend can signal a potential reversal.

In some cases, the indicator may continue counting up to 13 for additional confirmation, but the “9” signal usually garners the most immediate attention from traders. On the current Dogecoin chart, the TD9 number has appeared, indicating a potential shift in the daily downtrend. After reaching “9,” the sequence resets at “1,” signaling the beginning of a new bullish setup if subsequent candles confirm the reversal.

Key Price Levels to Monitor

The critical support zone resides at $0.313, which represents the 0.382 Fibonacci retracement level on the daily chart. Sustaining a daily close above this level could strengthen bullish momentum, especially if buyers react to the TD9 signal. Any recovery attempt is likely to face initial resistance around $0.3400, where the downtrend line is positioned. A clear break above this line may confirm the anticipated trend reversal.

Although a challenge, reclaiming the $0.4000 region (0.5 Fibonacci level at $0.395) would signal a more robust recovery for Dogecoin after its recent decline. In essence, Dogecoin currently stands at a critical juncture. While the TD Sequential’s “buy” setup doesn’t guarantee immediate gains, it historically acts as an early warning sign of potential trend exhaustion.

If bullish traders seize upon this signal, Dogecoin could potentially recover towards mid-range resistances. Conversely, a failure to maintain the $0.3100 area could prolong the current downward trend.

The post Is Dogecoin Set to Soar? Chart Suggests Big Gains on the Horizon appeared first on Crypto Breaking News.

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Filed under: News - @ January 27, 2025 8:19 am