An analyst has pointed out how Dogecoin has just seen a short-term buy signal on the same indicator that captured the latest local top in its price. TD Sequential Has Just Formed A Buy Signal For Dogecoin In a new post on X, analyst Ali Martinez has talked about a Tom Demark (TD) Sequential signal that has appeared in the hourly price chart of Dogecoin. The TD Sequential is an indicator from technical analysis (TA) that’s used to locate potential reversal points in an asset’s price. The indicator works by counting up candles printed in the same color. These candles may or may not be consecutive. Once nine candles of the same polarity appear, the metric suggests the trend may be nearing exhaustion, and a reversal could occur for the asset. Related Reading: Bitcoin Whales Cut Back: Average Holdings At Lowest Since 2018 Naturally, where the price would head after the TD Sequential’s setup comes down to the polarity of the preceding nine candles. If the candles were green, the asset may see a bearish turnaround. Similarly, red candles would instead suggest a rebound to the upside. Now, here is the chart shared by Martinez that shows the quick TD Sequential signals that Dogecoin has formed on the hourly timeframe during the past day: As is visible in the graph, Dogecoin completed a TD Sequential setup in its 1-hour price on Wednesday. The signal came as the memecoin’s price rallied beyond the $0.22 level. Since the setup finished with nine green candles, the indicator implied a potential turnaround to the downside for the asset. And indeed, since the signal, DOGE has seen a pullback. From the chart, it’s apparent that this drawdown has meant that another quick TD Sequential setup has appeared, this one involving nine red candles. Considering that the last signal coincided with a top, this new one may imply a short-term bullish rebound for Dogecoin. It now remains to be seen whether the indicator will hold. In some other news, on-chain data shows DOGE whales are currently not making any major moves, as the analyst has pointed out in another X post. The above chart displays the data of the Supply Distribution from on-chain analytics firm Santiment, which is an indicator that tells us about the amount of supply that a particular DOGE wallet segment is holding right now. Here, Martinez has chosen the 10 million to 100 million tokens cohort, popularly known as the whales. Related Reading: Bitcoin In Trouble? Exchange Reserve Spikes To Highest In Months It would appear that the total holdings of this group has fallen to sideways movement recently, indicating that the large investors are sitting on the sidelines, participating in neither distribution nor accumulation. DOGE Price At the time of writing, Dogecoin is floating around $0.215, down more than 3% over the last seven days. Featured image from Dall-E, charts from TradingView.com
An analyst has pointed out how Dogecoin has recently observed patterns in two indicators that could prove to be bullish for its price. Dogecoin Has Seen Positive Signals On TD Sequential & Whale Supply In a new post on X, analyst Ali Martinez has talked about a Tom Demark (TD) Sequential signal that Dogecoin has just witnessed on its 4-hour price chart. The “TD Sequential” refers to a technical analysis indicator that’s used for locating points of probable reversal for any asset’s price. Related Reading: Bitcoin Tokens Have Only Been Getting Older This Bull Run, Analyst Reveals The indicator includes two phases, called the setup and countdown. During the first of these, the setup, candles in the price of the same color are counted up to nine. These candles aren’t necessary to be consecutive. When the nine candles are in, the setup is said to be finished, and the TD Sequential gives a reversal signal for the asset. Naturally, if the candles involved in the setup’s completion were green, the indicator would suggest a top, and if they were red, the signal would be for a bottom. As soon as the setup is over, the countdown phase begins. This phase of the TD Sequential works exactly the same as the setup, except for the fact that it involves thirteen candles, not nine. Once these candles have also been printed, the indicator gives another buy or sell signal for the price. Recently, Dogecoin has finished the first of these TD Sequential phases. Here is the chart shared by the analyst that shows this signal in DOGE’s 4-hour price: As is visible in the above graph, the Dogecoin 4-hour price has completed the TD Sequential setup with nine green candles, which implies the coin may now be set for a turnaround to the upside. This isn’t the only positive signal that DOGE has observed recently, as Martinez has pointed out in another X post that the whales have been busy purchasing during the last couple of days. The on-chain indicator cited by the analyst is the Supply Distribution from the analytics firm Santiment, which tells us about the amount of supply that any particular wallet group is holding right now. Below is the chart for the metric that specifically shows the data for the whale cohort, massive investors carrying between 10 million and 100 million tokens: From the graph, it’s apparent that the Dogecoin supply held by the whales has registered an increase recently. More specifically, the whales have added a net amount of 90 million DOGE (worth around $28.7 million) to their holdings in the last two days. Related Reading: Is Bitcoin Bull Run Over? What This Legendary Metric Says This accumulation would imply that these key investors believe the cryptocurrency to be worth buying at the current price level. DOGE Price At the time of writing, Dogecoin is floating around $0.319, up more than 10% over the last week. Featured image from Dall-E, Santiment.net, chart from TradingView.com