Although Dogecoin (DOGE) is experiencing volatility amidst bearish sentiments, technical indicators suggest that the meme coin is signaling a potential buying opportunity.
Specifically, crypto analyst Ali Martinez highlighted in an X post on June 30th that Dogecoin shows signs of a potential rebound. The TD Sequential indicator has presented a buy signal on the three-day chart.
This signal, highlighted by analyst Martinez, suggested that a reversal could be on the horizon, possibly setting the stage for DOGE to aim for higher price levels, including the critical $0.15 mark.
“The TD Sequential presents a buy signal on the #Dogecoin 3-day chart, predicting a rebound of one to four candlesticks for $DOGE!,” the analyst said.
Dogecoin price levels to watch
The three-day chart for Dogecoin reveals a period of extended downward movement, characterized by a series of red candlesticks from mid-June to the end of the month. This decline saw DOGE fall from approximately $0.17 to just below $0.13.
However, the appearance of a green arrow on the chart, signifying the TD Sequential buy signal, indicates a potential reversal. The TD Sequential is a popular technical analysis indicator used to identify possible turning points in the market. A buy signal typically suggests a potential upward movement of one to four candlesticks, each representing a three-day period in this context.
Indeed, DOGE has been on a bearish trend since around June 7th, characterized by consistent red candlesticks indicating sustained selling pressure. Around June 24th, DOGE found temporary support near the $0.12 level.
The first challenge for DOGE is breaking above the immediate resistance at $0.13. A successful breach of this level could confirm the validity of the buy signal. If DOGE maintains upward momentum, the next significant target is $0.15. This level poses a psychological barrier and marks previous support turned resistance.
Should bullish sentiment persist, DOGE could aim for higher levels, potentially targeting $0.17, where the initial downtrend began in early June.
Dogecoin AI prediction
Meanwhile, the CoinCodex platform, utilizing AI-powered machine-learning algorithms, projected continued bearish sentiment for Dogecoin in the short term. Data retrieved on June 30th from the tool suggested DOGE might trade around $0.1047 by July 30th.
As of the latest update, Dogecoin is trading at $0.1224, showing a daily loss of 0.6%. On the weekly chart, the token is down by over 1%.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk
