An analyst pointed out how Dogecoin has recently observed a pattern of two indicators that may prove beneficial for its price.
Dogecoin is seeing positive signals on TD Sequential & Whale supply
In a new post on X, analyst Ali Martinez discussed 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 identify potential reversal points in the price of any asset.
The indicator comprises two phases known as setup and countdown. In the first setup, candles of the same color can count up to nine. These candles do not necessarily need to be 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 completing the setup are green, the indicator suggests a top, while if they are red, the signal will indicate a bottom. After the setup ends, the countdown phase begins. This stage of TD Sequential is identical to the setup, except it involves 13 candles instead of 9. Once these candles are also printed, the indicator will provide another price buy or sell signal.
Recently, Dogecoin has completed the first stage of the TD Sequential phase. Below is the chart shared by the analyst, showing this signal in DOGE's 4-hour price:
It appears that the candle causing the signal is red | Source: @ali_charts on X
As shown in the above chart, Dogecoin's 4-hour price has completed the TD Sequential setup, with 9 green candles, indicating that the token may now be ready to move upward.
This is not the only positive signal recently observed for DOGE, as Martinez pointed out in another post on X, whales have been busy buying in recent days.
The on-chain metric cited by the analyst is the supply distribution from the analytics company Santiment, which tells us how much supply any specific group of wallets currently holds.
Below is an indicator chart specifically showing whale group data, which are large investors holding between 10 million to 100 million tokens:
The value of this indicator seems to have been rising in recent days | Source: @ali_charts on X
It is clear from the chart that the supply of Dogecoin held by whales has recently increased. More specifically, whales net added 90 million DOGE (worth approximately 28.7 million USD) in the past two days.
