Dogecoin Could Rally to $0.10 Based on Pattern, Analyst Says
An analyst has pointed out that Dogecoin (DOGE) may experience a rally towards $0.10 if a support cluster holds up. The analyst referred to a TD-Sequential buy signal that recently emerged for DOGE on its 3-day price chart. The TD-Sequential indicator is used in technical analysis to identify potential tops and bottoms in an asset’s price.
Understanding the TD-Sequential Indicator
The TD-Sequential indicator consists of two phases. The first phase, called the “setup,” lasts for nine candles. During this phase, the polarity of the candles is observed, and after the ninth candle, a reversal point may be expected. Whether it indicates a buy or sell signal depends on the prevailing price trend.
The second phase, known as the “countdown,” lasts for thirteen candles and signifies a probable bottom or top for the asset.
What Does the Chart Show?
The chart shared by the analyst highlights the completion of a TD-Sequential setup phase for Dogecoin’s 3-day price. It also identifies a support cluster around the $0.074 level, where important lines have converged. According to the analyst, as long as this support cluster holds, there is a good chance that DOGE could rebound to $0.10 or even higher.
Potential Price Rally
If Dogecoin manages to rally to $0.10 from its current spot price, it would represent a surge of approximately 24%. However, if DOGE retests the $0.074 support level and bounces back to this target, the coin could experience a rally of over 35%.
DOGE’s Current Price
Dogecoin started the year with a significant drop and has been consolidating since then. It is currently trading around $0.0804.
Hot Take: Dogecoin’s Potential for a Rebound
Based on a TD-Sequential buy signal and the presence of a support cluster, there is a possibility that Dogecoin could see a rebound and reach $0.10 or higher. This would result in a significant price surge for the cryptocurrency. However, it remains to be seen whether the support cluster will hold and if DOGE can break out of its consolidation phase.
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