A popular crypto analyst says one technical signal suggests that top meme token Dogecoin (DOGE) could be primed for a bounce.
Ali Martinez tells his 104,600 followers on the social media platform X that the Tom DeMark (TD) Sequential Indicator presented a bullish signal for DOGE.
“The TD Sequential presents a buy signal on the Dogecoin DOGE four-hour chart, anticipating a price rebound!”
Traders use the TD Sequential Indicator to predict potential trend reversals for tokens based on the closing prices of their 13 previous bars or candles.
Martinez also notes that Dogecoin whales bought more than 90 million DOGE in the past two days.
DOGE is trading at $0.314 at time of writing, a fractional decrease in the past 24 hours.
Looking at Bitcoin (BTC), Martinez warns that traders should be worried if the top-ranked crypto asset by market cap drops below a certain price level.
“You don’t want BTC to dip below $92,730 – it’s essentially free-fall territory if that level breaks.”
Martinez suggests that below $92,730, the next on-chain support for BTC hovers at around $69,000 based on Glassnode’s UTXO (Unspent Transaction Output) Realized Price Distribution, a metric that shows the amount of Bitcoin that last moved within a specific price bucket.
But while Martinez is sounding the alarm about a potential pullback for BTC, he notes that a 20-30% correction represents “the most bullish thing that could happen to Bitcoin.”
Bitcoin is trading at $94,671 at time of writing.
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Generated Image: Midjourney
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