Dogecoin has been struggling to find clear direction between short- and long-term technical indicators lately. While a sell signal draws attention on the charts in the short term, the ongoing triangle formation on the monthly chart continues to remain in the focus of investors in the long term.
Short term sales warning
According to technical analysis, with the recent rise, Dogecoin price gave a sell signal on short-term charts after reaching the level of $ 0.109. Especially in the chart shared by Ali Charts on the X platform, the TD Sequential indicator reaching the value “9” is interpreted as a sign of fatigue in the market.
This formation is generally known to indicate that the trend will lose strength after several consecutive candles move upwards. In recent price movements, it was observed that Dogecoin increased from the $ 0.09 region to the $ 0.11 limit, but purchases slowed down at the upper levels. It was understood that the selling pressure increased especially with the last black candle.
Ali Charts stated that TD Sequential on the charts issued a sales warning for Dogecoin, so he expects a price correction soon. While the $ 0.109 level stands out on the chart, $ 0.104 is pointed out as support and $ 0.114 and $ 0.118 are pointed out as the upper resistance band.
It is stated that if the price remains below the $0.109 region, the next support point will be $0.104. It is stated that in a deeper decline, the price may drop to $0.10. However, these levels have not been completely broken yet; After the last rise, the price is still in the upper band. For this reason, it is stated that the resulting sell signal is a short-term warning rather than a clear trend reversal.
For now, the market’s focus is on whether buyers will offer resistance in the $0.109 region or whether sellers will push the price to lower supports.
Triangle structure and possible movements in the long term
On a monthly basis, Dogecoin has been trading in a large triangle structure that has been going on for years, where the price follows falling resistance at the top and rising support at the bottom. The TradingView chart shared by Surf on X reveals two major triangle formations that have stood out in recent market cycles.
The first triangle model appeared in the 2014-2017 period, and the price increased significantly from this structure. The second largest formation was formed in the period between the 2018 peak and the strong rise in 2021. In both examples, a new upward wave started with the upward break of the triangle.
In the current situation, since the 2021 peak, Dogecoin has been moving in a similar triangle again. The price continues to remain above the ascending support line, while on the other hand, it is trapped below the descending resistance line above. This narrowing range is seen as critical for possible large movements.
Surf: “What if Dogecoin is preparing for a similar cycle again?” He draws attention to past patterns with his comment.
However, a definitive break from this triangle has not yet occurred. The positive scenario is kept alive as long as the rising support remains above, but in case of a downward break, it is evaluated that the trend may weaken and a deeper correction may come to the fore.
In summary, while the warning to be cautious in the short term stands out in Dogecoin’s technical outlook, the potential for movement in a triangular structure in the long term is closely followed by investors.
