Dogecoin (DOGE) may be nearing a turning point. A buy signal from the TD Sequential indicator on its three-day chart suggests the recent downtrend might be weakening, potentially paving the way for a price recovery. This signal, noted by crypto expert Ali on X (formerly Twitter), indicates DOGE is "primed for a bounce" after a significant bearish period. The TD Sequential buy setup, often interpreted as a sign of exhausted selling pressure, has captured the attention of market observers.

Dogecoin's Recent Price Action and Trend Analysis

Since mid-January, DOGE has experienced a decline, characterized by lower highs and lows. A sharp drop in early March exacerbated this downward trend. However, after reaching $0.1500, the price has stabilized somewhat. Recent candlesticks show market indecision, with small bodies and long wicks suggesting waning seller pressure. The descending trendline from a previous high is currently being tested; a breakout above this level could signal a shift in momentum.

Image Source: X/Ali

DOGE Support and Resistance Levels

Support appears to be around $0.1500, a level where buying activity has previously emerged. Resistance lies between $0.1900 and $0.2000, former support levels that were breached during the price decline.

A break above resistance could propel DOGE towards $0.22-$0.24. Conversely, failure to hold current prices might lead to retesting the support level and further price drops.

DOGE Market Scenarios and Price Outlook

Technically, DOGE is at a crucial juncture. A price break above $0.1900 could ignite bullish momentum. However, rejection at the resistance level could trigger another downturn, potentially pushing DOGE back towards $0.1500.

The TD Sequential buy signal has traders closely watching DOGE's movements to determine whether this will lead to a sustained recovery or if the bearish trend will continue.

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