- Despite losing 12.37% of its value this year, Dogecoin could soon reach $0.1.
- The price grew more than the DAA, suggesting a buy signal.
Dogecoin [DOGE] could be on its way to $0.1 within a short timeframe, analyst Ali Martinez disclosed on X (formerly Twitter).
According to Martinez, the Tom DeMark (TD) Sequential had presented a buying opportunity that could also foreshadow the run.
However, in his post, the analyst noted that the price prediction would depend on the $0.074 support. If bulls can defend the support, then DOGE might hit $0.1. But a break below it could send the price further down.
The TD Sequential recently presented a buy signal on the #Dogecoin 3-day chart. As long as the $0.074 support cluster continues to hold, $DOGE has a great chance of rebounding to $0.100 or higher! pic.twitter.com/J9fm65nHkf
— Ali (@ali_charts) January 14, 2024
Now could be the time to get in
AMBCrypto looked at the chart shared by Martinez. From the chart above, the previous nine bars had closed below the previous four candles before it.
Also, the eighth and ninth bars had closed below the previous seven, confirming that the buy set-up was almost perfect.
So, traders who open long positions at the market price of $0.08 could be profitable. However, it is important to mention again that the key to the potential remains the $0.074 support.
At press time, Dogecoin’s price had decreased by 12.37% since the year began. So, if the price rises to $0.1 or higher, these losses would be erased while offering holders a possible 20% gain.
A few days ago, AMBCrypto reported how DOGE price continued to trade sideways. Should the price rally, then DOGE would become the top meme coin that joins the rally currently enjoyed by some altcoins.
A look at the price-DAA divergence also showed that a Dogecoin entry at $0.08 could be ideal. DAA stands for Daily Active Addresses (DAA). It is the number of unique crypto addresses interacting with a particular coin.
As of this writing, the price-DAA was -45.35%.
Source: Santiment
When combined with the price action, the metric can give entry or exit signals. If the price had declined more than the DAA, DOGE would have shown an exit signal. But since the price grew more than the DAA, it infers a buy signal.
Bullish divergence appears
From the technical point of view, the Exponential Moving Average (EMA) showed that DOGE’s trend could be bullish in the mid-term. This was because the 50 EMA (blue) had crossed above the 200 EMA (yellow).
Also, the 50 EMA was near $0.085, indicating that this point could be the coin’s support level later. In addition, the Know Sure Thing (KST) indicator and price action moved in opposite directions.
While the Dogecoin price made lower lows, the KST showed signs of making higher lows.
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This is considered a bullish divergence. Therefore, a potential trend reversal to the upside could be imminent. This was also corroborated by the Relative Strength Index (RSI).
Source: TradingView
At press time, the RSI was 43.23 while making attempts to cross the midpoint. If the RSI moves past a reading of 50, then DOGE could well be on its way to $0.1 sooner than projected.
