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Dogecoin (DOGE), the largest meme coin by market capitalization, is currently on an uptrend, riding on the waves of positive broader market sentiment. However, on-chain market analyst Ali Martinez highlighted DOGE technical indicators, which suggest a potential price correction ahead.
What Dogecoin technical indicator is showing
In an X post, Martinez posted a Dogecoin chart showing DOGE trading past the $0.14 level. He noted that the TD Sequential, a crucial indicator for identifying the exact time of potential price reversals, flashes a sell signal on the daily chart.
Yuri MolchanThis indicates that DOGE’s current uptrend stems from increased purchases, meaning it might be overbought. This phenomenon typically occurs when demand exceeds supply. Also, a cryptocurrency enters the overbought region when a price surge is without a supporting investment rationale.
A selling period usually follows an overbought condition. Based on this premise, Martinez claimed DOGE will potentially see a brief correction before continuing its ongoing uptrend. As of this writing, the DOGE price was trading at $0.143, up 7.15% in the past 24 hours.
On the weekly chart, DOGE rose over 28%, demonstrating its potential for further price surges.
Dogecoin predictions
Meanwhile, other market analysts have forecast bullish outcomes for DOGE. In a recent U.Today report, pseudonymous crypto trader DonAlt claims DOGE is well-positioned to reach the $1 mark. The trader based his forecast on Dogecoin’s increased social sentiments compared to other market players.
Tomiwabold OlajideBesides increased social sentiment, Dogecoin recently witnessed a spike in whale activity. Overnight, the cumulative number of large investors holding DOGE equals around $63 million. In just 24 hours, whale inflow exceeded 1.17 billion DOGE, while outflows amounted to 640.1 million DOGE, respectively.
This indicates bullish activity from Dogecoin whales. Because these whales possess a large amount of crypto, such moves are usually followed by notable price movements.
Tomiwabold Olajide
Vladislav Sopov
Dan Burgin