Dogecoin appears to be on the verge of a return, with a credible technical signal indicating that it is poised to take off.
In the Bitcoin market, Warren Buffett’s famous remark about being greedy while others are afraid seems to be alive and well. While the Crypto Concern and Greed Index detected “high fear” in the market, Dogecoin has shocked investors by rallying over 80%.
Dogecoin Makes Its Debut
Dogecoin appears to be on the verge of a comeback.
After reaching an all-time high of $0.74 on May 8, DOGE began a consolidating period. Its price has been making a succession of lower highs since then, with the $0.16 support level preventing a sharper fall.
By drawing trend lines around the pivot highs and lows on DOGE‘s daily chart, it looks like a descending triangle is forming.
A surge in purchasing pressure over the last several hours pushed DOGE over the triangle’s hypotenuse, indicating a possible breakout. Additional purchasing pressure around present price levels might confirm that DOGE is on track for a 78 percent gain.
This goal is calculated by measuring the triangle’s y-axis and multiplying it by the breakout point.
The Tom DeMark (TD) Sequential indicator, which now displays buy signals on both the daily and weekly charts, adds to the bullish picture. The bullish patterns emerged as red nine candlesticks within these periods, indicating a one to four candlestick upswing.
A daily or weekly green two candlestick trading above a previous green one candle might provide as confirmation of the TD’s buy signal, potentially accelerating Dogecoin‘s rise above $0.34.
Even though the changes appear to favor the bulls, investors should keep in mind that Dogecoin must maintain above $0.16 for the bullish situation to remain intact. Failure to do so may result in a significant increase in selling pressure on DOGE.
If there is a sell-off around this price point, the eighth-largest cryptocurrency by market capitalization may fall by 40% to $0.095.