Dogecoin TD Sell Signal Goes Off, But Here’s Why Parabolic Bull Run Can Still Continue
Dogecoin just showed a sequential sell signal from Tom DeMarco (TD), but one analyst explains how Dogecoin’s parabolic run is set to continue.
Dogecoin is currently showing a similar pattern to previous bull runs
in a new postal Over at X, analyst Ali Martinez discusses the recent TD sequence signal formed for Dogecoin’s weekly price. this”TD sequential” refers to a technical analysis (TA) indicator that indicates possible top and bottom locations in the price of a given asset.
The indicator consists of two phases: setup and countdown. In the first pass, candles of the same color are counted to nine. Once nine candles appear, the setup is complete and a reversal of the asset can be expected.
Of course, if the candle before the setup is completed is green, the price will start to fall, while if the candle is red, the price will rise.
After the setup is completed, the countdown begins. This phase of the indicator works similarly to the setup, except that it lasts for 13 candles. After these thirteen candles also appear, the asset may be considered to have reached another possible turning point.
Dogecoin recently completed the first type of TD sequence phase, as shown in the chart below, where analysts shared its weekly price.
As shown in the chart, Dogecoin has completed a TD sequence setup with nine green candles, which means that the indicator has just given a sell signal for memecoin.
Given the history of this indicator, this could lead to a retracement of the asset. That said, history also tells us something else, as Martinez highlights in his chart.
It seems that during the past two bull marketDOGE observed a TD sequence setup during the first phase of the rally similar to what has been seen recently. These signals caused the coin to fall, but the bearish momentum did not last long both times, as each brief setback was followed by renewed gains.
If this trend continues, the latest TD Sequential sell signal may also prove to be just a minor impediment to cryptocurrency price gains.
It can also be seen from the figure that the last two Dogecoin bull markets coincided exactly with rising parallel channel. The channel has also continued to remain intact in the current cycle so far, which means that if DOGE were to move all the way up to its upper channel, it would likely break out of the $14 mark.
However, it remains to be seen whether the asset will repeat this pattern or whether this cycle will be different from the previous two.
dog price
Dogecoin has stalled over the past few weeks, with its price continuing to trade sideways around the $0.41 mark.
