Crypto analyst Ali Martinez says that Dogecoin (DOGE) is gearing up for a parabolic advance that might shake out the impatient before manifesting.
Martinez tells his 91,000 followers on the social media platform X that DOGE has just given a bearish sell signal on the Tom Demark (TD) Sequential indicator on the weekly chart.
[adinserter block="1"]The TD Sequential indicator flashes buy and sell signals based on the closing prices of a given time period, and in this case, nine weeks.
However, Martinez notes that the indicator gave off the exact same bearish signal in both 2017 and 2020 right before massive rallies to new cycle highs and beyond.
“DOGE is going to test your patience in this parabolic run! Just like in 2017 and 2020, we got a sell signal from TD, anticipating a brief correction before the bull rally continued.”
Martinez’s chart suggests that DOGE is in a large ascending channel that could push the memecoin to $14 if it reaches the upper bound of the pattern once again.
At time of writing, DOGE is trading at $0.42.
Turning to Bitcoin, Martinez remains bullish on BTC despite many market participants calling for a correction after its sizeable multi-week rally near $100,000.
Looking at social media metrics that track mentions of “pullback” and “100K,” Martinez says that the price may move in the opposite direction of the predominant market sentiment.
“Everyone’s anticipating a pullback after Bitcoin reclaimed $95,000 – just look at how often it’s mentioned. But markets often move against the crowd’s expectations.
Don’t be surprised if BTC pushes even higher!”
The analyst also backs up his bullish stance by noting the average mining cost of Bitcoin, which refers to how much it costs miners to earn one BTC.
“Seeing lots of chatter about Bitcoin BTC dipping below $90,000.
Keep in mind that the average mining cost is $90,524. Historically, during a bull run, BTC has never fallen below its mining cost.”
At time of writing, BTC is trading at $96,523.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
