Dogecoin (DOGE) Has Seen Positive Signals On TD Sequential & Whale Supply

An analyst has pointed out how Dogecoin has recently observed patterns in two indicators that could prove to be bullish for its price.

An analyst has highlighted two bullish technical indicators for Dogecoin (CRYPTO: DOGE) — the TD Sequential and whale supply.

Sequential Signal: According to X, analyst Ali Martinez observed a Tom Demark (TD) Sequential signal on Dogecoin’s 4-hour price chart. The TD Sequential is a technical analysis indicator designed to identify potential price reversal points.

The indicator consists of two stages: setup and countdown. During the setup phase, candles of the same color (either green or red) are counted up to nine. These candles do not need to be consecutive.

Once nine candles are complete, the setup is said to be finished, and the TD Sequential generates a price top or bottom signal. In this case, since the candles involved in completing the setup are green, the indicator is signaling a possible price top.

After the setup, the countdown phase begins. During this phase, candles are counted in the same manner as the setup phase, except for the fact that thirteen candles are counted instead of nine. Once these candles are also printed, the indicator generates another buy or sell signal.

In the case of Dogecoin, the 4-hour price has recently completed the first stage of the TD Sequential, as shown in the chart shared by the analyst.

Chart shared by Ali Martinez, showing the TD Sequential setup on Dogecoin’s 4-hour price chart. Source: X

The chart shows nine green candles, completing the setup phase of the TD Sequential indicator on Dogecoin’s 4-hour price price.

Whale Accumulation: In another X post, Martinez highlighted that whales have been observed purchasing heavily over the last couple of days.

The on-chain indicator used by the analyst is the Supply Distribution from Santiment, which shows the amount of supply that any particular wallet group is currently holding.

The chart below shows the data for the whale cohort, specifically massive investors holding between 10 million and 100 million tokens.

Chart showing the Dogecoin supply held by whales, according to data from Santiment. Source: X

The chart indicates that the Dogecoin supply held by whales has indeed seen an increase recently. More specifically, whales have added a net amount of 90 million DOGE (worth around $28.7 million) to their holdings in the last two days.

This accumulation suggests that these key investors may be viewing the cryptocurrency as being worth buying at the current price level.

DOGE Price Action: At the time of writing, Dogecoin is trading at $0.319, up 10.36% over the last seven days.