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Dogecoin has just showed a Tom Demark (TD) Sequential sell signal, but an analyst has explained how the parabolic run could still continue for DOGE. Dogecoin Is Currently Showing A Pattern Similar To Previous Bull Runs
In a new post on X, analyst Ali Martinez has discussed about a TD Sequential signal that has formed for Dogecoin’s weekly price recently. The “TD Sequential” refers to a technical analysis (TA) indicator that points out locations of probable tops and bottoms in a given asset’s price.
This indicator involves two phases: the setup and the countdown. During the first of these, candles of the same color are counted up to nine. Once the nine candles are in, the setup is said to be complete, and a reversal in the asset may be expected. Related Reading Ethereum Open Interest Sets New Record, Analyst Says Fireworks ‘Guaranteed’ 12 hours ago
Naturally, the price would start heading down if the candles leading up to the setup’s completion were green, while it would catch an updraft if the candles were red.
As soon as the setup is over, the countdown begins. This phase of the indicator works similarly to the setup, except for the fact that it lasts for thirteen candles. After these thirteen candles are also in, the asset may be considered to have arrived at another likely point of turnaround.
Dogecoin has recently completed the TD Sequential phase of the first type, as the below chart for its weekly price shared by the analyst highlights. Looks like the memecoin has finished this phase with nine green candles | Source: @ali_charts on X
As is visible in the graph, Dogecoin has finished the TD Sequential setup with nine green candles, which implies the indicator has just given a sell signal for the memecoin.
Considering the indictor’s history, it’s possible that this would lead to a drawdown for the asset. That said, history would also inform us of another thing, as Martinez has highlighted in the chart.
It would appear that during each of the last two bull runs, DOGE observed a similar TD Sequential setup in the initial leg of the rally as the one witnessed recently. These signals led into declines for the coin, but the bearish momentum didn’t last very long on either occasion, as the rally renewed each time after a temporary setback. Related Reading Glassnode’s Bitcoin “Seller Exhaustion” Indicator Just Flashed A Signal: Bottom In? 21 hours ago
If this trend is to go by, it’s possible that the latest TD Sequential sell signal may also prove to be only a minor obstacle on the way up for the cryptocurrency’s price.
From the graph, it’s also visible that the last two Dogecoin bull runs both fit neatly into an ascending parallel channel. The channel has also continued to hold in the current cycle so far, meaning that if DOGE is going to rise all the way toward its upper channel, it might break through the $14 mark.
It only remains to be seen, though, whether the asset would repeat the pattern or if this cycle is going to be different from the last two. DOGE Price
Dogecoin has hit the snooze during the last couple of weeks as its price has continued to move sideways around the $0.41 mark. The price of the coin appears to have seen a significant rise in the past month | Source: DOGEUSDT on TradingView Featured image from Dall-E, charts from TradingView.com