Crypto analyst Ali Martinez claims that technical signals indicating a strong upward trend are appearing on Dogecoin's ($DOGE) monthly chart. According to Martinez, the current situation resembles the price structure of 2022, when $DOGE surged by 145% in one month.
Martinez stated that the Tom DeMark Sequential indicator generated a buy signal on Dogecoin's monthly chart last month, suggesting a potential trend reversal.
In the analyst's view, the current technical outlook for $DOGE largely aligns with the pattern observed in August 2022. Back then, Dogecoin formed an inverted hammer and a doji candlestick following the TD buy signal, which was followed by a 145% monthly gain.
The monthly chart for $DOGE is now showing an inverted hammer pattern, a buy signal, and a doji candlestick in the process of forming. Martinez noted that if the previous scenario repeats, a significant price move could begin with the next monthly candlestick.
Blockchain data also shows that large investors are positioning themselves in anticipation of an upward trend. According to information provided by Martinez, large players (whales) have accumulated over 430 million $DOGE in the past week. These purchases are seen as confirmation of the technical forecast.
The critical resistance level to watch for Dogecoin is $0.0813. In the analyst's opinion, a sustained close above this level, where over 30 billion $DOGE were previously sold, could signal a continuation of the upward trend.
According to Martinez, if the $0.0813 level is broken, the next resistance, as indicated by URPD data, would be $0.177.
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