DOGE price has had great difficulty getting back to $0.2 since losing this price level in early April. And meme coins have been on a downward trend for most of the past few weeks, falling as low as $1.4 at one point.
However, the tide appears to be turning for Dogecoin investors, with the meme token seeing positive price performance over the past week. The double-digit gains and bullish price action over the past seven days have not gone unnoticed by experts, as many expect DOGE price to continue to strengthen in the near future.
Is a Dogecoin price rally imminent?
Renowned cryptocurrency analyst Ali Martinez shared interesting analysis and predictions about Dogecoin price through the X platform. According to experts, DOGE’s recent price action is a sign of a potential uptrend in the coming days.
The reason for this bullish forecast centers around the Tom Demark (TD) Sequential Indicator. Martinez noted that the indicator is flashing a buy signal on Dogecoin’s daily chart, suggesting that a price rally lasting one to four days could be in the cards.
Tom Demark Sequential is a technical analysis indicator used to identify potential points of trend exhaustion and price reversal. Typically, a TD sequential indicator consists of two main steps: “Setup” and “Countdown.”
The setup phase consists of nine consecutive candlesticks depending on whether the token is in a bullish or bearish trend. The countdown phase, on the other hand, consists of 13 consecutive candles and begins immediately after the ‘set’ is complete.
DOGE price chart showing the setup phase | Source: Ali_charts/X
meIn the chart highlighted above, DOGE price has just completed a nine-candle setup phase, which could be a signal for a potential price reversal. Given that this phase was mostly formed by bearish candles, the TD Sequential could indicate a bottom for the Dogecoin price.
Ultimately, if a potential rally produces four consecutive bullish candles, investors will likely see the DOGE price revert to $0.2. However, they may also pay attention to the formation of a “countdown” phase.
Once the countdown phase on the Dogecoin daily chart is completed, a stronger and longer-lasting price reversal may emerge. This could see the meme token breaking out of its current bearish trend and gathering momentum for higher price levels.
DOGE prices at a glance
At the time of this writing, the price of DOGE is around $0.1618, reflecting a significant rise of 4.7% over the last 24 hours.
DOGE price showing signs of resurgence on the daily timeframe | Source: DOGEUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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