- Dogecoin surged 7.15% in 24 hours, but TD Sequential signals a potential price correction.
- Whale investors accumulated $63M in DOGE as technical indicators suggest a possible price dip.
- TD Sequential sell signal suggests Dogecoin may be overbought, signaling a brief market correction.
Dogecoin (DOGE), the largest meme coin by market capitalization, recently experienced an increase in price due to exclusively favorable market conditions. Nonetheless, on-chain market analyst and entrepreneur Ali Martinez has pointed out a technical signal that could signal an upcoming bearish turn for DOGE.
TD Sequential Indicator Suggests Possible Price Reversal
Market analyst Ali Martinez recently shared Dogecoin’s price movement and a chart showing DOGE trading above $0.14. Martinez’s explanation is centered on the TD Sequential tool, which enables traders to identify accurate points of potential price changes. The chart provided by the indicator shows that the sell signal has emerged on the daily chart of DOGE, suggesting the cryptocurrency might experience a brief correction before resuming its uptrend.
The TD Sequential helps the trader tell when the market is overbought or oversold. With Dogecoin in the current price increase zone, DOGE might be entering an overbought position. This is due to a demand surge that outpaces the available supply, which causes a slump in prices. As of the price change in the current period, DOGE has gained 7.15% in the last 24 hours, trading at $0.143.
On-Chain Activity and Market Implications
The recent bullish trend in Dogecoin’s price is supported by technical indicators and a significant rise in on-chain activity, particularly from large holders or “whales.” According to recent data, Dogecoin has seen substantial whale activity, with large investors accumulating DOGE worth approximately $63 million.
Within a 24-hour window, 1.17 billion DOGE entered whale wallets, while outflows reached 640.1 million. This influx of whale investments often signals further market movements, as whales hold considerable influence over cryptocurrency price trends.
While the TD Sequential indicator suggests a possible short-term correction, other market analysts remain optimistic about DOGE’s long-term potential. For instance, some experts, such as pseudonymous trader DonAlt, have predicted that Dogecoin could reach as high as $1 based on increasing social sentiment and positive whale activity.
The post Market Analysts Warn Dogecoin Could Be Overbought Following Recent Rally appeared first on Crypto News Land.
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