Dogecoin (DOGE) Price: TD Sequential Indicator Flashes Buy Signal

TLDR

• TD Sequential indicator shows a buy signal on Dogecoin’s daily chart, suggesting a potential price reversal
• Price has dropped about 35% from $0.4843 to around $0.32 over recent days
• Key support level identified at $0.313 (0.382 Fibonacci retracement)
• Initial resistance expected around $0.34 at the downtrend line
• Recovery above $0.40 would indicate stronger bullish momentum

The popular cryptocurrency Dogecoin has shown signs of a potential trend reversal after experiencing a sharp decline over the past several days. According to technical analysis shared by crypto analyst Ali Martinez, a recognized indicator called the TD Sequential has produced a buy signal on Dogecoin’s daily price chart.

The latest price data shows Dogecoin trading around the $0.32 level, representing a decline of approximately 35% from its recent peak near $0.4843. This downward movement has brought the cryptocurrency to what many traders consider a critical support zone.

The TD Sequential indicator, developed by market technician Tom DeMark, is designed to identify potential price reversal points by tracking consecutive price movements in a particular direction. In Dogecoin’s case, the indicator has completed a sequence of nine consecutive bearish candles, triggering what traders call a “TD9 buy signal.”

Martinez shared his analysis through social media platform X, where he highlighted the technical setup using a daily chart of the DOGE/USDT trading pair. The chart clearly shows the recent downward price action culminating in a long black candlestick, indicating strong selling pressure that pushed prices toward the $0.32 mark.

The TD Sequential presents a buy signal on the #Dogecoin $DOGE daily chart, anticipating a price rebound! pic.twitter.com/9gNGgU1rtu

— Ali (@ali_charts) January 27, 2025

The mechanics behind the TD Sequential indicator involve counting a series of price bars that move in one direction. When nine consecutive bars are recorded during a downtrend, the indicator suggests that selling pressure may be exhausted, potentially leading to a price rebound.

Current market data places the nearest support level at $0.313, which corresponds to the 0.382 Fibonacci retracement level on the daily timeframe. This technical level is widely monitored by traders as it often acts as a bouncing point for prices during corrective moves.

Dogecoin Price on CoinGecko

Looking at potential resistance levels, traders are watching the $0.34 area, where a descending trendline has formed. A successful break above this level could provide additional confirmation of the trend reversal suggested by the TD Sequential signal.

The daily chart structure shows that Dogecoin would need to overcome several technical hurdles to confirm a broader recovery. The first major milestone would be reclaiming the $0.34 level, which could open the path toward higher resistance zones.

Further up the price ladder, the $0.40 region represents another important technical level, specifically the 0.5 Fibonacci retracement at $0.395. Reaching this zone would require sustained buying pressure and could signal a more robust recovery from the recent downturn.

Trading volume data indicates that market participation has remained steady during the recent price decline, suggesting active interest from both buyers and sellers at current levels.

The TD Sequential’s buy signal comes after ten days of consecutive downward price movement, during which Dogecoin has tested several support levels. This extended period of decline has brought the price to levels last seen during previous market consolidations.

Market observers note that while the TD Sequential has historically provided reliable signals for potential trend changes, these indicators should not be considered guaranteed predictors of future price movement.

The current price structure shows that Dogecoin has maintained its position above the crucial $0.31 support zone, despite recent selling pressure. This price level has acted as a foundation for previous price recoveries.

Technical analysis of the daily timeframe reveals that the cryptocurrency has entered an oversold condition according to several momentum indicators, which aligns with the TD Sequential’s buy signal.

Recent trading patterns show decreased selling volume near the current support level, potentially indicating that downward pressure might be waning. However, traders typically wait for confirmation through price action before making trading decisions.

The most recent price data shows Dogecoin trading in a narrow range near the $0.32 level, with immediate support at $0.313 and resistance at $0.34.

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