In a recent development for cryptocurrency enthusiasts and investors, Dogecoin is flashing a warning on its weekly price chart. The stalwart indicator, famed among traders for its predictive prowess, the Tom Demark (TD) Sequential, has presented a sell signal for the beloved memecoin.
The TD Sequential is an analytical tool comprising two core phases. The initial countdown, known as the ‘setup,’ involves tallying a sequence of up to nine consecutive candles that share the same bullish or bearish trend. Upon completing this string, the asset stands at a junction—poised for a potential price trend reversal. In Dogecoin’s case, the appearance of nine consecutive green candles has culminated in this critical juncture.
Upon reaching the end of the setup phase, the countdown phase ensues, spanning thirteen candles. It is at the culmination of this sequence that the market anticipates another shift, predicting either an ensuing peak or trough in the coin’s valuation.
The latest analysis shows that Dogecoin has indeed finished a TD Sequential setup, characterized by a green homogenous streak. Such a pattern historically hints at an impending bearish turn. The data suggests Dogecoin may be about to descend into a corrective phase, with key resistance levels holding strong, resistance levels that have notably capped its growth before.
Expert prognostication casts potential target levels for Dogecoin in a downward trajectory toward $0.085, or more drastically, $0.078, translating to a possible depreciation of 11% to over 18% from its current trading price.
Despite the bearish signal, not all indicators spell gloom for Dogecoin’s prospective value. Analysts propose that a bullish break above the $0.11 price point could invalidate the downward trend. Dogecoin’s cost basis distribution also provides insights into potential on-chain support and resistance. It’s at these congested nodes where large swathes of investors’ assets align, fortifying the price level as a substantial barrier during upward or downward retracements.
The most robust on-chain support zone for Dogecoin appears to be cemented between $0.094 and $0.097. As the coin has recently dipped into this bracket, it is testing the fortitude of on-chain defenses against technical pressures.
Engagement with Dogecoin has recently witnessed a modest uplift, with the cryptocurrency trading at about $0.096. This is a 7% increase over the preceding week, an echo of the oscillations typical in the volatile crypto markets.
Investment decisions in the cryptocurrency realm are rife with complexities and risks. Prospective investors are encouraged to engage with comprehensive research and to weigh their strategies with care. Remember, information shared in the marketplace serves to educate and does not constitute direct investment advice.