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.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
