Dogecoin Buy Signal Just Fired – Is A Bounce Coming?

Dogecoin (DOGE) may be setting up for a short-term rebound after a prolonged period of downside pressure, with the TD Sequential indicator flashing a buy signal on DOGE’s higher-timeframe chart, a tool traders often use to spot trend exhaustion and potential reversals.

As it happens, the signal appears after multiple consecutive bearish candles, suggesting that selling momentum could be running out, judging by the analysis shared by renowned cryptocurrency trading expert Ali Martinez in an X post on December 22.

While TD Sequential doesn’t guarantee an immediate rally, it has historically been effective at identifying areas where price action pauses, stabilizes, or begins to reverse, especially when broader sentiment is already heavily skewed to the downside.

What The TD Sequential Buy Signal Means For DOGE

The TD Sequential is designed to highlight moments when a trend becomes overstretched. In Dogecoin’s case, the indicator printed a ‘9’ count, which typically marks trend exhaustion rather than trend continuation. This suggests that DOGE may be approaching a point where sellers lose control, and buyers begin to step back in.

Importantly, the signal is forming after Dogecoin has already retraced significantly from recent highs. That context matters. TD buy signals tend to be more reliable when they appear after extended declines, rather than during choppy or sideways conditions.

Indeed, the famous meme coin is currently trading at $0.1332, up 1.3% on the day, down 2.67% across the week, and declining 2.68% over the past month, according to the latest price chart information.

From a technical perspective, DOGE now sits at a decision point. If buyers defend current levels and confirm the signal with follow-through, the market could attempt a relief bounce toward nearby resistance zones. Failure to hold support, however, would invalidate the setup and keep the broader downtrend intact.

Why Traders Are Watching This Closely

Dogecoin remains one of the most sentiment-driven assets in the market, often reacting sharply once momentum shifts. A confirmed TD Sequential buy signal could attract short-term traders looking for a bounce, even if the larger trend remains uncertain.

For now, the indicator suggests risk may be skewing away from further immediate downside. Whether that turns into a sustained move or just a temporary pause will depend on how the price reacts in the sessions ahead.

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