Dogecoin Looks Ready to Enter New Rally, A Technical Indicator Suggests
Dogecoin appears primed to make a comeback; a reliable technical indicator suggests it could be happening very soon.
Warren Buffett once famously said: be greedy when others are fearful. It might be a good strategy to be greedy ion the current cryptocurrency market, as Crypto Fear and Greed Index is showing “extreme fear”.
Dogecoin Ready to Rally?
DOGE entered a consolidation period after hitting at an all-time high of $0.74 on May 8. Since then, its price has been making a series of lower highs while it bottomed at the $0.16 support level.
Reading the DOGE charts, it seems that descending triangle is emerging on DOGE’s daily price by drawing trend lines around the pivot highs and lows.
A sudden spike in buying pressure managed to push DOGE beyond the triangle’s frame, suggesting a potential breakout. Further buying pressure around the current price levels could confirm that DOGE is primed for a 78% advance.
This target is determined by measuring the triangle’s y-axis and adding that distance to the breakout point.
Source: TradingView
The Tom DeMark (TD) Sequential indicator adds credence to the optimistic outlook as it currently presents buy signals on both the daily and weekly charts. The bullish formations developed as red nine candlesticks, which is indicative of a one to four candlestick upswing within these time frames.
A daily or weekly green two candlestick trading above a preceding green one candle can serve as confirmation of the TD’s buy signal, which could help fuel Dogecoin’s upswing toward $0.34.
Source: TradingView
Although the odds seem to favor the bulls, investors must be aware that Dogecoin needs to hold above $0.16 for the bullish scenario to remain intact. Failing to do so could lead to a significant spike in the selling pressure behind DOGE.
A sell-off around this price point could see the currently eighth-largest cryptocurrency by market capitalization plunge by roughly 40% to $0.095.
