Dogecoin Sell Signal Goes Off: Analyst Predicts Targets
12 Dezembro 2023 - 9:00PM
NEWSBTC
A Dogecoin sell signal has appeared on the weekly price chart.
According to an analyst, here are the targets the coin could
potentially dip to. Dogecoin Has Observed A TD Sequential Sell
Signal Recently As explained by analyst Ali in a new post on X, TD
Sequential has flagged a sell signal for DOGE. The “Tom Demark (TD)
Sequential” here refers to an indicator in technical analysis
that’s popularly used for finding points of probable tops and
bottoms in any asset’s price. There are two phases involved in this
metric. During the first, candles of the same polarity are counted
up to nine, and at the end of these nine candles is a potential
reversal point for the asset. This phase is called the “setup.” If
the candles leading to the setup’s completion were green, then the
TD Sequential would give a sell signal for the chart. On the other
hand, if they were red, the signal would be a buy one. Related
Reading: Bitcoin Rushes To Exchanges, But This Sign Remains
Positive For The Bulls The other phase is the “countdown,” which
kicks off as soon as the setup is complete. This phase is thirteen
candles long; at the end of these thirteen, another probable top or
bottom occurs for the price. Dogecoin has seen its weekly price
complete a TD Sequential setup recently. Below is the chart shared
by the analyst that highlights this pattern in the memecoin. Looks
like the asset has recently seen nine green candles | Source:
@ali_charts on X As is visible in the graph, the TD Sequential has
completed the setup phase on the weekly chart of Dogecoin with
green candles recently. This could indicate that the coin may
reverse towards a downtrend from here on out. “This comes as DOGE
faces a key resistance level that has repeatedly thwarted its
climbs in the past,” explains Ali. “A correction could see prices
dip to $0.085 or even $0.078.” The former target would mean a
decrease of about 11% from the current cryptocurrency price, while
the latter would suggest a drawdown of more than 18%. Not all hope
may be lost for Dogecoin, though, as the analyst notes, “if DOGE
can surge past $0.11, the bearish scenario gets negated.” A few
days ago, Ali also shared this chart that showed the on-chain
support and resistance map of the memecoin: The cost basis
distribution of the asset | Source: @ali_charts on X In on-chain
analysis, support and resistance are defined based on the
concentration of investors who bought at a particular level. Price
ranges hosting the cost basis of many addresses provide strong
support/resistance when the asset’s spot price retests them.
Related Reading: Crypto Market Crashes: Traders React With “Buy The
Dip” Calls The chart shows that the $0.094 to $0.097 range is the
strongest support zone for the asset out of all the listed ranges.
Dogecoin has declined into this zone recently, so it’s a test of
whether on-chain support can hold against the technical sell signal
that has recently formed. DOGE Price At the time of writing,
Dogecoin is trading at around $0.096, up 7% in the past week. The
price of the asset appears to have seen a dip over the past couple
of days | Source: DOGEUSD on TradingView Featured image from
Kanchanara on Unsplash.com, charts from TradingView.com,
Santiment.net
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