TD indicator points to an impending Dogecoin rebound, with the 4-hour RSI showing a bullish divergence and a possible price rally.
Analysis suggests a possible price rebound for the leading memecoin, Dogecoin (DOGE), which has been in a downturn in recent weeks. Per analytical expert Ali Martinez, the dog-themed memecoin has shown renewed bullish momentum on its 4-hour timeframe.
The seasoned analyst cited a bullish divergence on Dogecoin’s 4-hour relative strength index (RSI) as a factor that could drive a price rebound. The chart also showed bullish engulfing in the same timeframe, with the TD sequential indicator printing a buy signal.
#Dogecoin is showing a bullish divergence against the RSI on the 4-hour chart, with the TD indicator flashing a buy signal. These positive signs suggest a potential price rebound for $DOGE on the horizon. pic.twitter.com/kxlQQK7ses
— Ali (@ali_charts) September 2, 2024
According to Martinez, these key indicators could see Dogecoin revert its prevailing bearish momentum for a bullish pullback. Dogecoin trended downward for most of last month, falling over 16% in August. The downtrend has spilled into September, with DOGE shedding almost 2% in the past 24 hours.
Dogecoin Bounces from Support
Once again, Dogecoin bounced from the $0.09425 support on Monday. It previously rebounded from that region in early August during a wider market capitulation. The asset failed to thrive on an earlier report that the court threw out a lawsuit against Elon Musk on Friday.
Dogecoin’s RSI (12) stands at 40, while the 24-hour volume has spiked 82% to $522 million. However, sentiments remain bearish, as Binance’s order book shows more traders are betting on Dogecoin to see lower prices rather than to continue rebounding.
Notably, on-chain signals from IntoTheBlock show a mostly bullish outlook for Dogecoin, countering Binance’s higher sell-to-buy ratio. On-chain bid-to-ask volume imbalance turned bullish, with exchange signals showing a bullish disposition. Also, large transactions in the past 24 hours have increased by 1.88%.
Dogecoin traded at $0.0097 at the time of writing, with a market cap of $14.1 billion.