Key Insights
- TD Sequential flashes a buy on DOGE after a sustained downtrend—bounce potential emerges.
- Ascending triangle pattern forms again, hinting at a possible breakout near $0.25 resistance.
- RSI and MACD show neutral momentum; traders watching for breakout confirmation before acting.
Dogecoin (DOGE) was trading at $0.222 following a 5.19% decline in the past 24 hours. Despite the drop, a technical setup may be pointing toward a short-term price recovery. A TD Sequential buy signal has just appeared on the 1-hour chart, which some traders interpret as an early indicator of a bounce.
The TD Sequential system identifies trend exhaustion, and the appearance of the “9” candle marks a potential reversal zone. The setup was confirmed after a sustained downtrend with consecutive red candles, and the current candle is accompanied by an upward arrow.
“The setup looks primed for a bounce,” said Ali.
Price Consolidation May Be Nearing a Breakout
On the daily timeframe, Dogecoin continues to trade within a tight range just below $0.25. Chart analysis from Traders Tardigrade shows a familiar pattern of ascending triangles forming ahead of previous breakouts. In two earlier cases, DOGE broke out strongly after completing similar consolidation structures.
A third ascending triangle is now taking shape. Price is compressing inside the formation, which often signals that a breakout is approaching. The current trading level places DOGE near the upper resistance of the triangle, but a breakout has not yet occurred. Traders are watching for a strong move above the $0.25 mark with volume confirmation to validate a new leg higher.
Technical Indicators Signal Neutral Momentum
The Relative Strength Index (RSI) is currently reading 49.72, indicating that the asset is neither overbought nor oversold. The RSI signal line is slightly higher at 53.68, showing mild selling pressure, but not enough to confirm a directional move.
Meanwhile, the MACD indicator reflects a weak bearish crossover. The MACD line sits at 0.00430, just below the signal line at 0.00458. The histogram is slightly negative at -0.00028, pointing to low momentum and indecision in the market. Both indicators suggest the trend remains neutral in the short term.
Mixed Signals Suggest Waiting for Confirmation
Dogecoin’s chart currently shows a blend of bullish and neutral signals. The short-term TD Sequential buy alert could lead to a minor rebound, while the broader daily chart pattern indicates potential for a breakout if volume returns.
However, with momentum indicators showing limited strength, “traders may want to wait for confirmation” before acting. The price remains range-bound, and a clear move above $0.25 or below $0.21 would likely define the next trend.
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Source: https://coincu.com/analysis/dogecoin-drops-5/