Analysts have mentioned that Dogecoin has recently shown two key indicator patterns, which could have a positive impact on its price.
Dogecoin has shown positive signals in both the TD sequence and whale supply.
In a new post on X, analyst Ali Martinez mentioned that Dogecoin has just generated a Tom Demark (TD) sequence signal on its 4-hour chart. The TD sequence is a technical analysis tool used to identify potential reversals in asset prices.
This metric is divided into two phases, called 'setup' and 'countdown.' In the first phase, the setup phase, the price consistently shows candles of the same color until there are 9 candles. These 9 candles do not need to be consecutive.
Once these 9 candles appear, the setup phase ends, and the TD sequence will issue a reversal signal. If these 9 candles are green, it indicates that the market may have reached a top; if they are red, it suggests that a bottom may have been reached.
After the setup phase ends, the countdown phase begins. This phase is similar to the setup phase, except it requires 13 candles. Once these candles appear, the TD sequence will issue another buy or sell signal.
Recently, Dogecoin completed the first phase of the TD sequence. Below is the chart shared by the analyst showing this signal appearing on the 4-hour chart for DOGE:
As shown in the chart above, the 4-hour chart of Dogecoin has completed the setup of the TD sequence, with 9 green candles appearing, indicating that DOGE may now be ready for a rise.
However, this is not the only positive signal that DOGE has recently shown. As analyst Martinez mentioned in another X post, whales have been buying DOGE in large quantities lately.
The on-chain data cited by Martinez comes from the supply distribution metric of the analysis company Santiment, which shows the amount of DOGE held by different wallet groups.
Below is a chart showing specific data about the whale group (i.e., those holding between 10 million to 100 million DOGE):
From the chart, it can be seen that the supply of Dogecoin held by whales has recently increased. Specifically, whales have net added approximately 90 million DOGE (worth about $28.7 million) in the past two days.
This accumulation indicates that these large investors believe that Dogecoin is worth buying at the current price level.
As for the price of DOGE, it is currently around $0.319, having risen over 10% in the past week.
