One crypto analyst has identified a technical signal that could indicate a potential turnaround for Dogecoin (DOGE), the popular meme token.
Ali Martinez, who shares his insights with a large following on the social media platform X, highlights the bullish signal given by the Tom DeMark (TD) Sequential Indicator for DOGE.
The TD Sequential Indicator is utilized by traders to forecast potential trend reversals based on the closing prices of the previous 13 bars or candles.
Additionally, Martinez points out that large Dogecoin holders have acquired over 90 million DOGE in the past two days, indicating increased interest in the token.
At the time of writing, DOGE is trading at $0.314, showing a slight decline over the past 24 hours.
Shifting focus to Bitcoin (BTC), Martinez cautions traders about a critical price level that could trigger a significant downtrend if breached.
“A drop below $92,730 for BTC could lead to a free-fall scenario for the asset.”
According to Martinez, if BTC falls below $92,730, the next significant support level is around $69,000 based on Glassnode’s UTXO Realized Price Distribution metric.
Despite the warning signs for BTC, Martinez suggests that a 20-30% correction would actually be a bullish development for Bitcoin in the long run.
As of now, Bitcoin is priced at $94,671.
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Generated Image: Midjourney