Dogecoin has seen a Tom Demark (TD) Sequential sell signal on its 3-day chart, a potential sign that the memecoin could see a bearish reversal.
TD Sequential Has Formed A Sell Setup For Dogecoin
As highlighted by analyst Ali Martinez in an X post, the TD Sequential has just flashed a signal for Dogecoin's 3-day price. The TD Sequential here refers to an indicator from technical analysis (TA) that's generally used for pinpointing locations of probable turnaround in a given asset's price. It involves two phases.
In the first of these phases, called the setup, candles of the same color are counted up to nine. These candles may or may not be consecutive. Once the candles are in, the indicator prints a reversal signal for the asset. If the trajectory involved in the completion of the setup was a net uptrend, the TD Sequential gives a sell signal. On the other hand, nine red candles suggest a potential bullish turnaround for the price.
After the setup is over, the second phase, known as the countdown, picks off. The countdown works much in the same way, with the only difference being that it lasts for thirteen candles. Following these thirteen candles, the asset may be considered to have arrived at another reversal point.
The TD Sequential has completed the first type of phase for Dogecoin recently. Below is the 3-day chart of the memecoin shared by Martinez that shows this signal.
As is visible above, Dogecoin has seen the completion of a TD Sequential setup alongside the price recovery since mid-April. As this setup has involved nine green candles, the signal may be a bearish one. In other words, a price correction could now end up following for DOGE. Only time will tell, however, whether the TD Sequential signal will hold for the memecoin.
Dogecoin isn't the only top altcoin that has observed a TD Sequential signal recently. As the analyst has pointed out in another X post, Solana has also witnessed the completion of the indicator's setup phase.
The signal is also a sell one for SOL, but unlike for DOGE, it has come on a shorter timeframe: 1-day. This TD Sequential setup is a result of the recovery surge that the coin has witnessed in May.
Since the signal has appeared, Solana has declined by more than 6%, a possible sign that the bearish reversal may already be in action.
DOGE Price
Dogecoin has taken to consolidation over the last few days as its price is still floating around $0.11.
