Dogecoin has recently flashed a buy signal on the daily chart, suggesting the meme coin could be on the cusp of a parabolic run.
After showing strong momentum in November 2024 and the start of December 2024, the crypto market faces a strong pullback as the Federal Reserve recently poured cold water on 2025 liquidity expectations by announcing fewer than previously projected rate cuts.
Amid the rout, leading crypto meme coin Dogecoin (DOGE) is among the worst hit but a key indicator has now suggested that some reprieve may be in sight for the asset.
Could this be the start of another parabolic leg-up?
Dogecoin (DOGE) TD Sequential Flashes Buy Signal
At the time of writing, Dogecoin is trading around the $0.32065 price point, down 20% in the past week.
But, as recently highlighted by prominent crypto analyst Ali Martinez, some reprieve may be in sight for the leading meme coin. In a Monday, December 23 X post, Martinez revealed that the TD Sequential indicator had flashed a buy signal on the meme coin’s daily candle chart, hinting at an imminent rebound.
The TD Sequential is an indicator traders use to try to time price reversals, usually by considering the previous candle closes.
Interestingly, the recent buy signal comes on the heels of an analysis from Martinez suggesting the DOGE is on the verge of a parabolic run.
Dogecoin (DOGE) Surge to $18 Confirmed?
Earlier on Monday, Martinez suggested that DOGE could be replicating its price action in 2017 and 2021.
On both occasions, the doggy-themed meme coin had posted mammoth gains after correcting around 50% from an initial triple-digit percentage gain rally.
In 2017, it was a 212% gain followed by a 40% correction before a 5,000% rally to highs of $0.01857. In 2021, it was a 457% rally followed by a 56% slump before a surge to its current all-time high at $0.74.
This year, DOGE has surged over 400% to $0.48434 before correcting by 46% to recent lows around the $0.26216 price point.
Martinez suggested the asset could rally over 5,000% to the $18 price point if it replicates price action observed in 2017 and 2021, judging by an ascending channel on the asset’s weekly candle chart formed by the roughly four-year pattern.
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