Dogecoin Shows TD Sequential Sell Signal Amid Potential Bullish Continuation
Dogecoin has recently displayed a Tom Demark (TD) Sequential sell signal, yet an analyst notes that its parabolic run could persist.
Current Pattern Resembles Previous Bull Runs
Analyst Ali Martinez highlighted a TD Sequential signal for Dogecoin's weekly price in a recent post on X. The TD Sequential is a technical analysis indicator used to identify potential tops and bottoms in an asset's price.
The indicator consists of two phases: the setup and the countdown. In the setup phase, candles of the same color are counted up to nine. Upon reaching nine candles, the setup concludes, indicating a possible price reversal.
If the preceding candles were green, a price decline may follow; if they were red, an increase could occur. After the setup, the countdown begins, lasting for thirteen candles, which also signals another potential turnaround point.
Dogecoin has recently completed the TD Sequential setup, as shown in the chart below shared by the analyst:
The chart indicates that Dogecoin finished the TD Sequential setup with nine green candles, resulting in a sell signal for the cryptocurrency.
Historically, such indicators have led to temporary price declines. However, Martinez notes that in previous bull runs, similar TD Sequential setups preceded short-lived bearish momentum, followed by renewed rallies.
The current trend suggests that the latest TD Sequential sell signal may only represent a minor setback for Dogecoin's price trajectory.
The chart also shows that the last two bull runs for Dogecoin fit within an ascending parallel channel, which remains intact in the current cycle. If this pattern continues, DOGE could potentially rise above the $14 mark.
It remains to be seen if the asset will repeat past patterns or if this cycle will differ from the previous two.
DOGE Price
Dogecoin's price has been stagnant over the past weeks, hovering around the $0.41 mark.
