Dogecoin Sell Signal Goes Off: Analyst Predicts Targets

Keshav Verma

1 year ago

3 mins read

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A Dogecoin sell signal has appeared on the weekly price chart. According to an analyst, here are the targets the coin could potentially dip to.

Dogecoin Has Observed A TD Sequential Sell Signal Recently

As explained by analyst Ali in a new post on X, TD Sequential has flagged a sell signal for DOGE. The “Tom Demark (TD) Sequential” here refers to an indicator in technical analysis that’s popularly used for finding points of probable tops and bottoms in any asset’s price.

There are two phases involved in this metric. During the first, candles of the same polarity are counted up to nine, and at the end of these nine candles is a potential reversal point for the asset. This phase is called the “setup.”

If the candles leading to the setup’s completion were green, then the TD Sequential would give a sell signal for the chart. On the other hand, if they were red, the signal would be a buy one.

The other phase is the “countdown,” which kicks off as soon as the setup is complete. This phase is thirteen candles long; at the end of these thirteen, another probable top or bottom occurs for the price.

Dogecoin has seen its weekly price complete a TD Sequential setup recently. Below is the chart shared by the analyst that highlights this pattern in the memecoin.

Looks like the asset has recently seen nine green candles | Source: @ali_charts on X

As is visible in the graph, the TD Sequential has completed the setup phase on the weekly chart of Dogecoin with green candles recently. This could indicate that the coin may reverse towards a downtrend from here on out.

“This comes as DOGE faces a key resistance level that has repeatedly thwarted its climbs in the past,” explains Ali. “A correction could see prices dip to $0.085 or even $0.078.”

The former target would mean a decrease of about 11% from the current cryptocurrency price, while the latter would suggest a drawdown of more than 18%.

Not all hope may be lost for Dogecoin, though, as the analyst notes, “if DOGE can surge past $0.11, the bearish scenario gets negated.” A few days ago, Ali also shared this chart that showed the on-chain support and resistance map of the memecoin:

The cost basis distribution of the asset | Source: @ali_charts on X

In on-chain analysis, support and resistance are defined based on the concentration of investors who bought at a particular level. Price ranges hosting the cost basis of many addresses provide strong support/resistance when the asset’s spot price retests them.

The chart shows that the $0.094 to $0.097 range is the strongest support zone for the asset out of all the listed ranges. Dogecoin has declined into this zone recently, so it’s a test of whether on-chain support can hold against the technical sell signal that has recently formed.

DOGE Price

At the time of writing, Dogecoin is trading at around $0.096, up 7% in the past week.

The price of the asset appears to have seen a dip over the past couple of days | Source: DOGEUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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