Dogecoin (DOGE) Price Ready to Explode? Key Signal Flashes “Buy” on Weekly Chart

Dogecoin price may be entering a phase of renewed market attention as a widely followed technical signal has emerged on its weekly chart.

Dogecoin (CRYPTO: DOGE) price may be entering a phase of renewed market attention as a widely followed technical signal has emerged on its weekly chart.

The potential shift in focus comes amid persistent selling pressure that pushed Dogecoin from its highs near $0.50 to the current range below $0.18. But as the cryptocurrency continues to stabilize, one crypto expert is highlighting a classic buy signal that could herald a shift in trend.

What Happened: Crypto industry influencer Ali, known for his technical analysis, noted on X (formerly Twitter) that the TD Sequential indicator has triggered a buy signal on the Dogecoin chart.

The chart shared by the analyst shows a weekly "9" candle, a point in the TD Sequential system that often signals exhaustion in the prevailing trend. Traders are now observing the $0.165-$0.170 range for signs of support while awaiting further confirmation of a potential reversal.

"New week, new coin. Dogecoin has triggered a TD count on the weekly chart. We're looking for a move to 0.22, 0.28, and 0.35," the analyst stated.

Dogecoin Chart with TD Signal and Key Levels

The chart shows Dogecoin price trading in a prolonged downtrend since mid-December 2024. The price keeps dropping, showing lower peaks and dips each time, which means sellers are still in control. After falling to about $0.17, the price steadied with smaller movements on the chart, suggesting the downward push might be losing steam.

The "9" candle from the TD Sequential system appears on the latest bar. Historically, this number signals that a trend may be near exhaustion. In this case, it points to a possible bottom following months of declining prices. According to Ali's tweet, this could mark the start of a rebound for DOGE.

Support has emerged in the $0.165-$0.170 zone, where recent candles show long wicks and tighter price movement. This behavior may indicate that sellers are losing control at this level.

If DOGE price manages to hold this base, traders will be watching for a push toward $0.22, $0.28, and $0.35 as the next potential resistance points. A descending trendline from the December highs remains intact. For any bullish momentum to build, DOGE would need to break above this trendline and sustain a close beyond it. Until that occurs, the broader market structure remains bearish.

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The TD Sequential is a technical analysis tool that can be used to identify trends and turning points in financial markets. It is based on the work of technical analyst Tom DeMark, who developed the system in the 1970s.

The indicator works by assigning a numerical value to each candle on a chart. The values are then used to calculate a series of patterns, which can be interpreted by traders to anticipate changes in price direction.

One of the most common patterns is the "9" candle, which often signals the end of a trend. This pattern occurs when the price closes below the prior lows of the last five candles and the fifth candle is black.

The chart also shows that Dogecoin is trading below its 200-week moving average, another indication of a bearish market. However, if the cryptocurrency manages to close above this average, it could be a sign that the trend is changing.

Dogecoin Context: The meme coin has been a subject of interest among crypto traders, especially during the 2021 bull market when it soared to highs above $0.70.

Later, it faced significant selling pressure as broader crypto markets experienced a downturn. The recent price action shows that while there are technical signals emerging, the overall trend remains bearish.

Despite its playful image, Dogecoin has attracted attention from major industry players. Billionaire Elon Musk's involvement, leading to mentions in his tweets and integration with X (formerly Twitter), has kept Dogecoin in the spotlight.

The potential for a short-term rebound in Dogecoin is being discussed among traders as technical signals and sentiment continue to evolve.

Also Read: Is This The Best Time To Invest In Dogecoin As Price Drops Below Key Level?