Dogecoin recently displayed early signals of a technical reversal, with the cryptocurrency trading close to the $0.07 mark. A widely-tracked technical indicator has issued a buy signal on Dog
Dogecoin recently displayed early signals of a technical reversal, with the cryptocurrency trading close to the $0.07 mark. A widely-tracked technical indicator has issued a buy signal on Dogecoin’s monthly chart, drawing the attention of traders monitoring a key support zone that could influence the token’s next major movement.
The TD Sequential, a popular timing and momentum indicator among technical analysts, has triggered a buy signal for Dogecoin on its monthly timeframe. This signal emerged as Dogecoin approached an important support area around $0.056. Analyst Ali Charts reported that if Dogecoin sustains this level, a rebound could be on the horizon.
The TD Sequential has issued a buy signal on the monthly chart as Dogecoin trades near $0.056 support. A hold above this level may pave the way for a move toward $0.16, with broader resistance coming in near $0.45.
Based on this analysis, if the support at $0.056 holds, Dogecoin could initially target a recovery toward $0.16. This level is identified based on previous price actions and serves as a primary target for a possible rebound. If buying momentum grows, the token could then challenge the broader channel resistance at approximately $0.45.
LevelPrice TargetSignificanceSupport$0.056Key level to hold for bullish reversalInitial target$0.16First resistance level if rebound beginsChannel resistance$0.45Major upside target if rally acceleratesTraders are focusing on the $0.056 area as a potential bottom and actively watching for confirmation that the recent buy signal will lead to a sustained upward move.
Another technical perspective from analyst XForceGlobal draws attention to a possible triangle pattern forming on Dogecoin’s chart. The trader emphasized the importance of price holding above a clearly defined invalidation level for the pattern to remain relevant.
If Dogecoin remains above the invalidation level, accumulation patterns and broader market cycles could support significant gains, with estimates suggesting a potential 10 to 20-fold increase based on current cycle dynamics.
The analysis suggests that sustained support at this level could result in a powerful breakout. These predictions rest on ongoing accumulation activity and cyclical market behavior. Breaching the invalidation threshold, however, would negate the triangle structure and shift market sentiment.
In the coming weeks, market participants are expected to closely monitor Dogecoin’s performance near this pattern as it may dictate the strength of any upcoming rally.
Mini dictionary: TD Sequential is a technical analysis indicator developed by Tom Demark, designed to identify potential market turning points by counting price bar sequences.
Spot Dogecoin ETFs received their first net inflows in over a month this week, with new capital totaling $345,130 on July 21. Prior to this, the funds had experienced a prolonged period without fresh investments, including a day of outflows on July 2. The resumption of inflows signals a shift after weeks of flat or negative trading activity for these investment vehicles.
This inflow arrives as meme coins receive renewed market attention, sparking curiosity about whether the change marks the beginning of a sustained trend. Investors are expected to keep tracking upcoming ETF flow data for further signals of momentum.
Dogecoin, launched in 2013 as a lighthearted alternative to other cryptocurrencies, has grown into one of the most recognized cryptocurrencies worldwide, supported by a dedicated online community and frequent mentions in pop culture.
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