One analyst noted that a recent pattern observed by Dogecoin in two indicators could be bullish for its price.
Dogecoin sees positive signals on TD Sequential and whale supply
In a new post on X, analyst Ali Martinez talks about the Tom Demark (TD) Sequential signal Dogecoin just saw on its 4-hour price chart. The “ 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 phases, called setup and countdown. In the first phase, the setup phase, count nine candles of the same price color. These candles do not have to be consecutive.
When nine candles appear, the setup is complete and the TD Sequential signals a reversal of the asset. Of course, if the candle involved in the completion of the setup is green, the indicator will indicate a top, and if it is red, the signal will indicate a bottom.
After the setup, the countdown phase begins. This phase of the TD Sequential is exactly the same as the setup, except that it involves thirteen candles instead of nine. Once these candles also print, the indicator gives the price another buy or sell signal.
Recently, Dogecoin completed its first TD Sequential phase. Below is a chart shared by an analyst showing this signal in DOGE’s 4-hour price:
As shown in the above chart, Dogecoin 4-hour price has completed a TD Sequential setup with 9 green candles, which means that the coin may now be ready to turn upwards.
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.
Below is a chart showing the metrics for whales (large investors holding between 10 million and 100 million tokens):
As can be seen from the chart, the supply of Dogecoin held by whales has increased recently. More specifically, whales have added a net 90 million Dogecoins (worth about $28.7 million) in the past two days.
This accumulation means that these key investors believe that the cryptocurrency is worth buying at current price levels.
DOGE Price
At the time of writing, Dogecoin is priced at around $0.319, having gained more than 10% over the past week.
