Crypto analyst Ali Martinez (@ali_charts) has highlighted a possible trend reversal for Dogecoin, revealing that the popular memecoin has flashed a bullish technical signal on its daily chart. According to Martinez, the TD Sequential Indicator has presented a “buy signal,” suggesting a price rebound may be on the horizon.
Dogecoin prints TD9 buy signal
Shared chart – DOGE/USDT pair daily candlestick spreads – showing 10 days Lower price action. Dogecoin has retreated from previous highs near $0.4843 to trade around $0.32 over the past few days, shedding about -35%. The most recent candlestick on the chart is a long black (bearish) bar, indicating significant selling pressure that has pushed prices towards $0.3200.
“TD Sequentially Presents a Buy Signal on Dogecoin Daily Chart, Expects a Price Recovery!” Martinez posted by X. At the core of Martinez’s observations is the TD Sequential, a widely respected technical tool among experienced traders. Developed by market technician Tom DeMark, TD Sequential aims to identify price exhaustion points and potential reversals in ongoing trends. It works by counting a series of consecutive candles in one direction.
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The indicator usually monitors nine consecutive bearish or bullish candles. When a number of nine is reached during a sustained downtrend, it often flags a potential bullish turn — known as a “TD9 buy signal.” Conversely, nine consecutive high closes in an uptrend could signal a potential bearish reversal.
In more detailed setups, the indicator may continue to count up to 13, offering further confirmation, but the “9” signal often gets traders’ most immediate attention. On this Dogecoin chart, the TD9 number has just appeared, indicating that the daily downtrend is approaching a point of buyer interest. After a “9” candle, the sequence resumes at “1”, which could signal the beginning of a new bullish setup, if the following candles confirm a reversal.
Price levels to watch
The most important support area is at $0.313, the 0.382 Fibonacci retracement level on the daily chart. Maintaining a daily close above this level could strengthen bullish momentum if buyers respond to the TD9 signal. Any attempt at a the rebound Will likely face initial resistance around $0.3400, where the downtrend line is located. A decisive break above this (black) line could validate the anticipated trend reversal.
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While out of reach, regaining ground in the $0.4000 area (0.5 Fibonacci level at $0.395) would be a strong signal that Dogecoin has recovered from its downward cycle. Overall, Dogecoin is on important place. TD Sequential’s “Buy” setup does not guarantee an immediate rally, but it has historically served as a reliable early warning of trend fatigue.
If bullish traders capitalize on this signal, Dogecoin could make a price recovery towards mid-range resistances. Conversely, failure to hold the $0.3100 area could prolong the current down cycle.
Featured image created with DALL.E, chart from TradingView.com
