Dogecoin Signal Reaches Peak Indicates It's Time to Buy

In a new post on X, analyst Ali Martinez mentioned the Tom Demark signal (TD) Sequential appearing on the hourly price chart of Dogecoin. TD Sequential is a technical analysis indicator (TA) used to identify potential market turning points in the price of an asset. This indicator works by counting candles that are printed in the same color. These candles can be consecutive or non-consecutive. When nine extreme candles appear, the indicator suggests that the trend may be about to end and the asset may be at a market turning point. Of course, the price direction after establishing TD Sequential depends on the polarity of the nine previous candles. If the candles are green, the asset price may reverse downward. Similarly, the red candles indicate a recovery in the upward direction. Here is the chart shared by Martinez, showing the rapid TD Sequential signals that Dogecoin has formed on the hourly timeframe over the past day:

As can be seen on the chart, Dogecoin has completed the TD Sequential pattern with an hourly price on Wednesday. This signal appeared when the memecoin price rose above the threshold of $0.22. Since this pattern ended with nine green candles, the indicator suggests a potential bearish market turning point for the asset. And in fact, since the signal, DOGE has experienced a pullback. Looking at the chart, it is clear that this decline signifies the emergence of another rapid TD Sequential pattern, consisting of nine red candles. Considering that the most recent signal coincides with the peak, this new signal could indicate a short-term bullish recovery for Dogecoin. Currently, it is still unclear whether this indication will hold. In other news, on-chain data shows that DOGE whales are currently not making any major moves, as the analyst pointed out in another post on X.

The chart above displays Supply Distribution data from the blockchain analysis company Santiment, an indicator that tells us the amount of supply that a specific segment of DOGE wallets is currently holding. Here, Martinez has selected the group from 10 million to 100 million tokens, commonly referred to as "whales." It seems that the total holdings of this group have recently decreased horizontally, indicating that large investors are sitting on the sidelines, not participating in the distribution or accumulation.