One analyst has pointed out that Dogecoin has recently observed patterns in two indicators that could prove to be bullish.
Dogecoin Sees Positive Signals on TD Sequential & Whale Supply
In a new post on X, analyst Ali Martinez talked about the Tom Demark (TD) Sequential signal that Dogecoin just witnessed on its 4-hour price chart. “TD Sequential” refers to a technical analysis indicator used to identify possible reversal points in the price of any asset.
The indicator consists of two phases, called setup and countdown. In the first phase, setup, candles of the same color are counted to nine. These candles do not have to be consecutive.
When nine candles appear, the setup is considered complete and the TD Sequential gives a reversal signal for the asset. Naturally, if the candles involved in the setup completion are green, the indicator will suggest a top and if they are red, the signal will be a bottom.
Once the setup is complete, the countdown phase begins. This phase of the TD Sequential works exactly like the setup, except that it consists of thirteen candles, not nine. When these candles are also printed, the indicator will give another buy or sell signal for the price.
Recently, Dogecoin completed the first phase of the TD Sequential. Here is a chart shared by an analyst showing this signal in the 4-hour DOGE price:
As seen in the chart above, the 4-hour Dogecoin price completed a TD Sequential pattern with nine green candles, implying that the coin could now be preparing for a bullish trend reversal.
This isn’t the only positive sign DOGE has seen recently, as Martinez pointed out in another X post that whale investors have been busy buying in over the past few days.
The on-chain indicator cited by the analyst is the Supply Distribution from analytics firm Santiment, which tells us how much supply any given group of wallets is holding at the moment.
Below is a chart showing specific data from whale groups, large investors holding between 10 million and 100 million tokens:
From the chart, it is clear that the supply of Dogecoin held by whales has increased recently. Specifically, whales have added a net amount of 90 million DOGE (worth approximately $28.7 million) to their holdings over the past two days. This accumulation implies that these key investors believe the cryptocurrency is worth buying at current prices.
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