Dogecoin (DOGE) is currently finding it difficult to establish a clear direction, amid conflicting signals from both its short and long term technical indicators. While a sell signal is emerging on lower time frames, investors remain focused on a long-running triangle pattern visible on the monthly chart.
Short term sell signal emerges
According to recent technical analysis, Dogecoin rallied to $0.109 but then displayed a sell signal on short term charts. Notably, the TD Sequential indicator reached a “9” value on a chart shared by Ali Charts on X, which is widely viewed as a sign of potential trend exhaustion in the market.
This specific pattern often suggests the trend may weaken after several consecutive bullish candles. In the most recent moves, Dogecoin climbed from the $0.09 range up to around $0.11, but buying momentum slowed at higher levels. The appearance of a recent black candle highlighted growing selling pressure.
Ali Charts points out that the TD Sequential on Dogecoin’s chart is signaling a sell, and therefore a price pullback could be expected soon. The chart spotlights $0.109 as a critical level, with $0.104 seen as support, and upper resistance identified between $0.114 and $0.118.
If DOGE remains below the $0.109 zone, the next support level is at $0.104. In case of a steeper drop, the price could test as low as $0.10. However, these levels have not been definitively breached yet and DOGE is still hovering near the upper band after its latest move. This means the current sell signal is more of a short term caution than a definitive trend reversal, according to analysts.
Market attention is now turning to whether buyers will defend the $0.109 level or if sellers will push the price down toward lower support zones.
Long term triangle pattern and possible moves
Looking at the monthly chart, Dogecoin continues to trade within a large triangle formation that has been forming for years. The pattern is characterized by a descending resistance up top and a rising support below. On X, the user Surf shared a TradingView chart highlighting the two prominent triangle patterns that have shaped major cycles in Dogecoin’s history.
The first triangle appeared between 2014 and 2017, eventually breaking upward for a sizeable rally. The second major pattern formed between the 2018 peak and Dogecoin’s significant gains in 2021. In both cases, breaking above the triangle triggered a new wave of bullish momentum.
Currently, since the 2021 peak, DOGE has been consolidating within another similar triangle, with price holding above the rising support line but still contained beneath descending resistance. This narrowing range is viewed as a potential precursor to a significant upcoming move.
Surf asks, “What if Dogecoin is preparing for another similar cycle?” highlighting the similarities to past patterns.
However, there has yet to be a decisive breakout from the current triangle. As long as DOGE holds above the rising support, a positive scenario remains valid. If a downward break occurs, though, the trend could weaken and spark a deeper correction.
In summary, while technicals call for caution in the short term, the potential for a larger move within the long term triangle pattern keeps investors closely watching Dogecoin’s next steps.
