One analyst noted how Dogecoin has recently observed a pattern of two indicators that could prove to be bullish for its price.
Dogecoin Sees Positive Signals on TD Sequential & Whale Supply
In a new post on X, analyst Ali Martinez talks about the Tom Demark (TD) Sequential signal that Dogecoin just saw on its 4-hour price chart. “TD Sequential” refers to a technical analysis indicator used to locate possible reversal points in the price of any asset.
The indicator consists of two stages, called setup and countdown. In the first setup, candles of the same price color are counted up to nine. These candles are not necessarily consecutive.
When nine candles come in, the setup is said to be complete and TD Sequential provides a reversal signal for the asset. Naturally, if the candles involved in the completion of the setup are green, the indicator will suggest a top, and if they are red, the signal will be a bottom. After the setup is over, the countdown phase begins. This phase of the TD Sequential is exactly the same as the setup, except that it involves 13 candles instead of nine. Once these candles are printed as well, the indicator gives another price buy or sell signal.
Recently, Dogecoin has completed the first stage of a TD Sequential Phase. Below is a chart shared by an analyst showing this signal in DOGE’s 4-hour price:
It looks like the candle leading up to the signal was red | Source: @ali_charts on X
As shown in the above chart, Dogecoin 4-hour price has completed a TD continuation setup with 9 green candles, which means that the coin may now be ready for an upside move.
This isn’t the only positive signal observed for DOGE recently, as Martinez noted in another X post, whales have been busy buying over the past few days.
The on-chain metric cited by the analysts is supply distribution from analytics firm Santiment, which tells us how much supply any particular group of wallets is holding right now.
Here is a chart specifically showing data on the whale group, which are large investors holding between 10 million and 100 million tokens:
The value of this indicator seems to have been climbing in recent days | Source: @ali_charts on X
It’s clear from the chart that the supply of Dogecoin held by whales has increased recently. More specifically, whales have added a net 90 million DOGE (worth about $28.7 million) in the past two days.
