Dogecoin printed a TD buy signal on the monthly chart and broke out of a multi-week descending channel on the 4-hour chart in early July. The TD Sequential buy signal appeared after several months of decline, indicating potential exhaustion in selling pressure. Technical analysts view these developments as early signs of a possible trend shift following extended weakness in DOGE price action.
Dogecoin Monthly Chart Shows TD Buy Signal
Dogecoin printed a TD buy signal on the monthly chart, marked by a "9" on the TD Sequential indicator. The chart shared by Ali Charts shows DOGE in a prolonged decline from higher levels, with price forming a stretched bearish structure over several months.
The TD Sequential indicator is designed to identify exhaustion in a trend. When the signal appears after an extended move lower, traders interpret it as a warning that selling pressure may be fading. The main support level on the chart sits near the recent low area around $0.0779.
The signal does not guarantee an immediate breakout. DOGE requires follow-through from buyers and a stronger move back into higher price zones before the bullish case strengthens. The monthly TD buy signal represents the key technical development after a long stretch of weakness.
Dogecoin Breaks Above Descending Channel on 4-Hour Chart
Dogecoin broke above a multi-week descending channel on the 4-hour chart in early July. The chart shared by Crypto Coral shows DOGE trading inside a downward-sloping channel through much of June before pushing through the upper trendline.
Price moved back toward the horizontal level marked near 1 on the Fibonacci extension scale, which sits around the mid-$0.07 range. The broken channel area serves as a potential near-term support zone if DOGE holds above it.
The upside levels on the chart include the 1.618 extension near $0.082, followed by resistance zones around $0.088, $0.095, and $0.100. The breakout still requires follow-through. If DOGE falls back inside the channel, the recent low area near $0.070 would return to focus.
FAQ
What is the TD buy signal that appeared on Dogecoin's monthly chart?
The TD buy signal is a "9" marked by the TD Sequential indicator on Dogecoin's monthly chart. This signal appears after extended price declines and indicates potential exhaustion in selling pressure. The chart shared by Ali Charts shows the signal near the recent low area around $0.0779.
What price levels are traders watching after Dogecoin's channel breakout?
After breaking out of the descending channel, traders are watching the 1.618 Fibonacci extension near $0.082 as the first resistance level. Higher resistance zones sit around $0.088, $0.095, and $0.100. The mid-$0.07 range serves as potential near-term support if the breakout holds.
When did Dogecoin break out of the descending channel?
Dogecoin broke out of the multi-week descending channel in early July. The chart shared by Crypto Coral shows DOGE trading inside the downward-sloping channel through much of June before pushing through the upper trendline.
