Bullish Warning for Dogecoin: TD Indicator Flashes Buy Signal as $0.10 Target Looms

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The broader cryptocurrency market has undergone important corrections over the previous six months, pushed primarily by the 2 largest digital currencies: Bitcoin (BTC) and Ethereum (ETH). Dogecoin (DOGE), the main meme coin, has not escaped this pattern and is experiencing a transparent decline in worth.

Dogecoin worth is going through a 55% decline since its March excessive

Since hitting a yearly excessive of $0.22 in March, DOGE has suffered a considerable decline of 55.9%, and is presently buying and selling at round $0.0976. This decline is much more pronounced over longer time frames; based on CoinGecko factsDogecoin is now down 86% from its all-time excessive of $0.73 recorded in Could 2021.

Within the brief time period, Dogecoin is underperforming in comparison with the general crypto market, which has seen a decline of 6.90% over the previous week. Throughout the identical interval, DOGE’s worth fell 8.8%, additional illustrating the issues.

Nonetheless, there are increasingly more bullish indicators that might pave the best way for a restoration. Crypto analyst Ali Martinez just lately pointed out a bullish divergence is forming on Dogecoin’s 4-hour Relative Power Index (RSI).

Moreover, the analyst famous that the Tom Demark Sequential 9 (TD) indicator is giving a purchase sign, indicating {that a} worth restoration could also be within the offing.

Can DOGE break $0.10?

As outlined by the analyst, these indicators recommend that the Dogecoin worth may doubtlessly rise above present buying and selling ranges, with the $0.10 mark being a essential milestone not seen since August 24.

Reaching this stage would mark a profitable restoration of the token’s 50-day exponential shifting common (EMA), which coincides with the $0.10 worth level. Nonetheless, if the bullish momentum doesn’t materialize, there’s a threat of a failed try to regain this key resistance.

Ought to DOGE efficiently breach the USD 0.10 threshold, bulls should concentrate on the following main hurdle at USD 0.107. This stage is essential for any additional makes an attempt to maneuver up and sort out the following EMA.

If Dogecoin can overcome this resistance, it could possibly be poised to retest the 200-day shifting common at $0.11. A profitable break at this stage may sign a continuation of the restoration, doubtlessly pushing DOGE in direction of the following resistance stage at $0.13 on the DOGE/USDT day by day chart.

Conversely, Dogecoin worth has discovered a big help backside at $0.094 over the previous almost 4 weeks, stopping the token from crashing to $0.080 once more final week because it did throughout the broader market crash on August 5.

What is for certain is that regardless of these indicators, bullish momentum is far wanted for the coin to face increased resistance and consolidate above its earlier help ranges to proceed on its path to retest the yearly highs.

Featured picture of DALL-E, chart from TradingView.com