Dogecoin has recently shown a Tom Demark (TD) Sequential sell signal, hinting at a possible downturn. However, analyst Ali Martinez believes that the parabolic run for DOGE could still continue. Martinez explained that Dogecoin is currently displaying a pattern similar to its previous bull runs, indicating that the current sell signal might not stop its upward trajectory.
Martinez discussed the TD Sequential signal that has recently formed for Dogecoin’s weekly price. The TD Sequential indicator helps identify potential tops and bottoms in an asset’s price by counting candles of the same color. Once the setup phase is complete with nine candles, a reversal in the asset’s price may be expected. Subsequently, the countdown phase, lasting thirteen candles, marks another potential turnaround point for the asset.
Despite the sell signal triggered by the TD Sequential indicator, Martinez pointed out that the last two Dogecoin bull runs also saw similar setups at the beginning of the rally. While these signals led to temporary declines, the bearish momentum was short-lived, and the rallies resumed quickly. This historical pattern suggests that the current sell signal might not be a significant obstacle for Dogecoin’s price, and the upward momentum could continue.
Looking at the chart, Dogecoin’s price has been trading sideways around $0.41 in the past few weeks. However, the previous bull runs for DOGE followed an ascending parallel channel, and the current cycle seems to be following a similar pattern. If this trend continues, Dogecoin could potentially surpass the $14 mark in the near future. It remains to be seen if Dogecoin will repeat the pattern from the last two bull runs or if this time will be different.
In conclusion, while Dogecoin has recently shown a sell signal according to the TD Sequential indicator, analyst Ali Martinez believes that the current pattern in DOGE’s price resembles previous bull runs. The historical data suggests that the sell signal may not hinder Dogecoin’s upward trajectory in the long run. As Dogecoin continues to trade around $0.41, there is potential for the cryptocurrency to break through the $14 mark if it follows the pattern seen in the last two bull runs. Investors will need to monitor Dogecoin’s price movement closely to see if it follows historical trends or if this cycle will be different.
