- Dogecoin is at $0.203 after bouncing from a low of $0.182.
- The TD Sequential buy signal hints at a possible upward move.
- If DOGE stays above $0.182 it could aim for $0.215 or even $0.240.
Dogecoin (DOGE) is now potentially signaling a price reversal as the TD Sequential indicator flashed a buy signal on the 4-day chart. The token is currently trading at $0.20392 after having reached a low of $0.18291, while the indicator suggests that a change will occur concerning its trend. Traditionally, the TD Sequential buy signal marks local bottoms, and this setup is thus important for traders watching for rebound activity.
The chart has currently printed a count of 9, usually signalling the depletion of the downtrend and opening up for recovery in price. DOGE has been in a similar price pattern previously, concluding into a high bullish trajectory. If the same happens, traders may witness DOGE’s approaching significant resistance levels for the coming days.
Key Support and Resistance Levels
DOGE has recently been hovering around the low range of $0.18291, which is serving as a solid support base. Confirmation from this level will drive the price up to the next key resistance zone of $0.21500. As the buying pressure stacks to the fore, DOGE would be gunning for higher having put in its sight next price breakout point at $0.24000.
However, below that support would encourage another leg down to another critical area about $0.16000. The latter will be much impacted by market sentiment to ascertain whether DOGE will remain strong upward or succumbs under increased yielding pressure. Volume and demand will be very fundamental in supporting the break.
Market Outlook and Potential Price Movement
According to the TD Sequential buy signal, it may be that DOGE is near the point of reversal, with traders holding their breath for more. Sustained movements above $0.21500 will affirm strength, while downward breakages below $0.18291 can nullify the bullish outlook.
While participants in the market are looking for confirmation, the next few trading sessions are going to be critical. Should the buy signal hold, DOGE may try to rally and test some previous highs, but without strong volume, there may just be consolidation until the next major move.
