Despite the recent TD Sequential sell signal, which typically indicates a potential reversal in price movement, analyst Ali Martinez has pointed out that Dogecoin’s current pattern is similar to previous bull runs. This suggests that the parabolic run could still continue for DOGE, even after the sell signal.
The TD Sequential indicator consists of two phases: the setup and the countdown. The setup involves counting candles of the same color up to nine, while the countdown lasts for thirteen candles once the setup is complete. Dogecoin has recently completed the setup phase with nine green candles, signaling a potential sell signal for the meme coin.
Historically, Dogecoin has experienced similar TD Sequential setups in the initial legs of the last two bull runs. While these signals led to temporary declines in price, the bearish momentum did not last long, and the rally continued after a brief setback. This trend suggests that the current sell signal may not be a significant obstacle for Dogecoin’s price to continue rising.
The price chart also shows that the last two Dogecoin bull runs fit neatly into an ascending parallel channel. If this pattern continues, DOGE could potentially break through the $14 mark as it rises toward the upper channel. However, it remains to be seen whether Dogecoin will follow the same pattern or if this cycle will be different from the previous ones.
Despite the recent sideways movement in Dogecoin’s price around $0.41, the potential for a continued parabolic run remains. The TD Sequential sell signal may not necessarily lead to a prolonged downturn in price, as past trends have shown that Dogecoin’s rally could resume after a temporary setback. Investors will be watching closely to see if Dogecoin follows the pattern of the last two bull runs or if this cycle will bring new surprises.
