This article is also available in Spanish.
Crypto analyst Ali Martínez (@ali_charts) has highlighted a possible trend reversal for Dogecoin, revealing that the popular Memecoin has shown a bullish technical signal on its daily chart. According to Martínez, the TD sequential indicator has presented a “buy signal,” suggesting that a price rebound could be on the horizon.
Dogecoin Impressions TD9 Buy Signal
The shared chart, which extends to the daily candles of the doge/USDT pair, illustrates 10 days of downward price action. Dogecoin has retreated from previous highs near $0.4843 to trade at around $0.32, which it has shed around -35% in the past few days. The most recent candle on the chart is a long black (bearish) bar, reflecting notable selling pressure that pushed prices towards $0.3200.
“The TD Sequential presents a buy signal on the daily Dogecoin chart, anticipating a price rebound!” Martinez aware via X. At the core of Martinez’s observation is the sequential TD, a widely respected technical tool among experienced traders. Developed by market technician Tom Demark, the TD Sequential aims to identify price exhaustion points and potential reversals in ongoing trends. It works by counting a series of consecutive candles in one direction.
Related reading
The indicator usually monitors up to nine consecutive bearish or bullish candles. When a count of nine is reached during a persistent lower trend, it often marks a possible bullish turning point, referred to as a “TD9 buy signal.” Conversely, nine consecutive higher closes in an uptrend may indicate a possible bearish reversal.
In more extended setups, the indicator may continue to count to 13, offering additional confirmation, but the “9” signal itself often attracts traders’ more immediate attention. On this DogeCoin chart, the number TD9 has just appeared, which means that the daily downtrend could be reaching a point of buyer interest. After a “9” candle, the sequence resets to “1”, which may hint at the beginning of a new bullish setup, in case the next few candles confirm the reversal.
Price levels to watch
The most crucial support zone lies at $0.313, the 0.382 Fibonacci retracement level on the daily chart. Maintaining a daily close above this level could reinforce the bullish momentum if buyers respond to the TD9 signal. Any attempt at a bounce will likely face initial resistance around $0.3400, where the downtrend line lies. A decisive break above this line (black) may validate the anticipated trend reversal.
Related reading
While further out of reach, regaining ground in the $0.4000 region (0.5 Fib level at $0.395) would be a stronger sign that Dogecoin has recovered from its downward spiral. Overall, Dogecoin is in a crucial place. The TD Sequential “Buy” setting does not guarantee instant advantage, but historically serves as a reliable early warning of trend fatigue.
If bullish traders capitalize on this signal, Dogecoin could stage a price rally towards the mid-range resistances. On the contrary, failure to maintain the $0.3100 area could prolong the current downward cycle.
Featured image created with Dall.E, Grabe from TradingView.com
