Dogecoin has just triggered a Tom Demark (TD) Sequential sell signal on its 3-day chart, which could mean the memecoin is about to reverse downward.
TD Sequential Shows a Sell Setup for Dogecoin
Analyst Ali Martinez pointed out in an X post that the TD Sequential has flashed a signal on Dogecoin’s 3-day price chart. The TD Sequential is a technical analysis tool used to spot possible turning points in an asset’s price. It works in two phases.
In the first phase, called the setup, the indicator counts up to nine candles of the same color—these don’t have to be consecutive. Once the count is complete, the indicator gives a reversal signal. If the setup happened during an uptrend (nine green candles), it’s a sell signal. If it happened during a downtrend (nine red candles), it suggests a potential bullish reversal.
After the setup ends, the second phase—called the countdown—begins. It works the same way but lasts for thirteen candles. Once those are done, the asset may be at another reversal point.
For Dogecoin, the TD Sequential has just completed the setup phase. The 3-day chart Martinez shared shows that DOGE has seen a setup form alongside its price recovery since mid-April. Since this setup involved nine green candles, it’s a bearish signal—meaning a price correction could follow. Of course, only time will tell if this signal holds true.
Dogecoin isn’t the only major altcoin seeing a TD Sequential signal right now. Martinez also noted in another X post that Solana has completed the setup phase. That signal is also a sell, but it appeared on a shorter timeframe—the 1-day chart. This setup came from Solana’s recovery surge in May. Since the signal appeared, SOL has already dropped over 6%, suggesting the bearish reversal might already be underway.
DOGE Price
Dogecoin has been consolidating over the past few days, with its price still hovering around $0.11.
Featured image from Dall-E, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs about the Dogecoin TD Sequential indicator showing a sell signal written in a natural tone with clear and concise answers
BeginnerLevel Questions
Q I heard the TD Sequential indicator gave a sell signal for Dogecoin What does that even mean
A Its a technical tool that tries to predict when a price trend is getting tired A sell signal suggests the recent price increase might be ending and a drop could be coming
Q Is this a guaranteed sign that Dogecoins price will crash
A No No indicator is 100 accurate Its a warning sign not a guarantee The price could still go up or it might just flatten out
Q Should I sell all my Dogecoin right now because of this signal
A Not necessarily Its a reason to be cautious but you should consider other factors like overall market news your own investment goals and your risk tolerance Its just one piece of the puzzle
Q How does the TD Sequential indicator work in simple terms
A It counts price bars When it counts a specific number in one direction it suggests the trend is overextended and might reverse The sell signal is that 9th bar
Intermediate Advanced Questions
Q Whats the difference between a Setup and a Countdown in the TD Sequential
A The Setup is the first phase The Countdown is the second phase which is a stronger signal Most people refer to the 9 as the initial sell signal
Q Does this signal work better on Dogecoins daily chart or hourly chart
A Its generally more reliable on longer timeframes because they filter out shortterm market noise An hourly signal is more likely to be a false alarm
Q The signal appeared but Dogecoins price barely dropped Why