Cryptocurrency analyst Ali Martinez states that despite recent volatility and bearish sentiment, Dogecoin (DOGE) still shows promising signs for potential investors.
In a June 30th post, Martinez pointed out that the TD Sequential indicator on the three-day chart for Dogecoin shows a buy signal, suggesting a possible trend reversal. The analysis of the three-day chart reveals a recent downtrend for Dogecoin, marked by a series of red candles from mid-June to the end of the month. During this period, DOGE dropped from around $0.17 to below $0.13.
However, amidst the decline, a green arrow appeared on the chart, signaling potential buying opportunities. This technical indicator, TD Sequential, is widely used to identify potential market reversals, usually predicting an upward movement spanning from one to four three-day candles.
Since around June 7th, DOGE has been in a bearish trend characterized by consecutive red candles, indicating sustained selling pressure. It temporarily found support near the $0.12 level by June 24th. The immediate challenge for DOGE is overcoming resistance at the $0.13 level. Successfully surpassing this level could confirm the buy signal and pave the way for further profits. If the bullish momentum is sustained, the next significant obstacle is at $0.15, a level that has previously served as both support and resistance.
In perspective, if DOGE manages to maintain its upward trajectory, it potentially could aim for higher price targets, including $0.17, where the initial downtrend began in June.