Dogecoin trades at $0.069 after a death cross on its hourly chart, but analyst Ali points to a monthly buy signal and heavy whale buying as signs of a possible reversal. He flags $0.0813 as the level to watch, with $0.177 as the next target if it breaks.
Dogecoin may be setting up for a sharp move, according to crypto analyst Ali, who laid out five reasons for a potential upside breakout in a recent post. Ali said Dogecoin's setup could push the coin as high as $0.177 if it clears a major resistance zone.
Monthly chart flashes a buy signal
The Tom DeMark Sequential indicator flashed a buy signal on Dogecoin's monthly chart last month, pointing to a possible trend reversal, Ali said. He noted the current setup closely resembles August 2022, when an inverted hammer candle and a TD buy signal were followed by a doji candle and then a 145% monthly rally. Dogecoin is now showing the same pattern: an inverted hammer, a TD buy signal, and a developing doji candle.
Large holders appear to be positioning for the move. Over the past week, whales have accumulated more than 430 million DOGE, adding weight to the bullish technical setup.
$0.0813 is the level to watch
Dogecoin has traded sideways between $0.068 and $0.08 since June 25 and currently sits at $0.069, with a death cross recently appearing on its hourly chart. If the reversal Ali describes plays out, the key resistance to watch sits around $0.0813, where more than 30 billion DOGE were previously transacted.
The coin was sharply rejected from that level on June 23, and it has stayed a key level to watch since. A sustained close above $0.0813 could signal further upside, with the next resistance level at $0.177, according to Ali. If Dogecoin reclaims $0.0813 as support, it might break out of its current range, shifting attention to that higher target.
Source: U.Today
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