What to know:
- Dogecoin’s price is flashing a TD Sequential buy signal, suggesting a potential monthly trend reversal.
- Whales have accumulated more than 430 million DOGE, strengthening the bullish market outlook.
- $0.0813 remains the key resistance level, with over 30 billion DOGE previously transacted there.
Dogecoin (DOGE) is showing signs of a potential bullish reversal as its monthly chart mirrors a previous accumulation pattern. A fresh TD Sequential buy signal, whale activity, and improving technical structure are strengthening the outlook, while a confirmed breakout could signal the start of a broader recovery.
Dogecoin Price Setup Mirrors 2022 Bullish Reversal
According to the crypto analyst Ali Charts, Dogecoin (DOGE) is flashing a potentially bullish signal on its monthly chart after the Tom DeMark Sequential indicator issued a buy signal last month.
The setup suggests selling pressure may be weakening and a broader trend reversal could be developing, prompting traders to closely monitor DOGE’s next monthly candle for confirmation of renewed strength.
Source: Ali Charts’ X Post
This pattern has been in focus due to its resemblance to the Dogecoin pattern from August 2022, where there was an inverted hammer followed by a TD buying signal prior to the emergence of a doji candle.
These conditions were followed by a strong monthly move higher. The same situation is unfolding now on DOGE, but history does not necessarily repeat itself.
Also Read: Dogecoin Price Eyes Breakout as Whales Accumulate 680M DOGE
Whale Accumulation Strengthens DOGE Bullish Case
There is much more behind the positive outlook for Dogecoin than just technicals. In on-chain metrics, it can be seen that whales are taking more positions with significant accumulations of 430 million DOGE lately.
Such behavior may mean that the confidence of the big players is growing, and it might be a sign of a possible bullish turn.
Source: Ali Charts’ X Post
Accumulation of whales will be an important catalyst only when the accumulation happens while technical momentum improves.
Lower selling pressure can help in laying the groundwork for a potential reversal, although whale accumulation is not enough by itself to ensure the development of a trend. The breakout above resistance is necessary for DOGE to turn around.
$0.0813 Resistance Holds the Key to Further Upside
The Dogecoin bulls have been monitoring the crucial resistance level at $0.0813 as the area has seen significant trading activity before.
A monthly closing price above the area will be an indication that the bulls have managed to counter the sellers and take control again. This move would also enhance the positive setup for further buying interest going forward.
Source: Ali Charts’ X Post
But in the case where DOGE changes this resistance to support, the market participants’ focus may shift to the next URPD resistance close to $0.177.
However, it is essential to confirm the current monthly structure’s ability to transform into a reversal pattern comparable to that in 2022. The TD Sequential buy setup and the bullish doji give hope.
Also Read: Dogecoin Price Breakout: DOGE Whales Buy $62M as Bulls Target $2.80
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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