Dogecoin just showed a sequential sell signal from Tom DeMark (TD), and the analyst explained how DOGE’s parabolic rise could still continue.
Dogecoin is currently showing a pattern similar to past bull markets
In a new post on X, analyst Ali Martinez discussed the TD sequential signal that recently formed on Dogecoin’s weekly price. “TD Sequential” refers to a technical analysis (TA) indicator that indicates the location of the expected peak and trough of the price of a particular asset.
This indicator includes two phases: setup and countdown. In the first stage, candles of the same color are counted up to nine. Once 9 candles enter, the setup is said to be complete and a reversal of the asset may be expected.
Naturally, if the candlestick is green until the setup is complete, the price will start to fall, but if the candlestick is red, it will be on an uptrend.
The countdown will begin as soon as the setup is complete. This phase of the indicator works similarly to the setup, except for the fact that it lasts for 13 candlesticks. After these 13 candles also entered, one might think that the asset has reached another likely tipping point.
Dogecoin recently completed its first type of TD sequential phase, as highlighted by the chart below of weekly prices shared by analysts.
As seen in the graph, Dogecoin completed a TD Sequential setup with 9 green candlesticks. It means the indicator has given a sell signal on memecoin.
Given the background of the accused, this could lead to the withdrawal of assets. That said, history may tell us otherwise, as Martinez highlights in his chart.
In each of the past two bull markets, DOGE appears to have observed a TD sequential setup similar to what we recently witnessed during the first leg of the rally. These signals led to a decline in the coin, but in both cases the bearish momentum did not last very long, as each temporary pullback was renewed with a rally.
If this trend continues, the latest TD sequential sell signal may also prove to be just a minor hindrance in the crypto price’s upward journey.
The graph also shows that Dogecoin's last two bull runs have both stayed neatly within an ascending parallel channel. Also, this channel has continued to maintain its current cycle so far, meaning it could break through the $14 mark if DOGE moves all the way up toward the upper channel.
However, it remains to be seen whether the asset will repeat this pattern or if this cycle will be different from the past two.
doge price
Dogecoin has been in a doze mode for the past few weeks as its price continued to move sideways around $0.41.
